Produce Business May 2010

Reader Service # 6 MAY 2010 • VOL. 26 • NO. 5

43 FEATURES

CANADA’S CULTURALLY INFLUENCED PRODUCE CONSUMPTION...... 43 Experts say a heavily European-influenced culture affects produce retailing, COVER STORY which also causes Canadian retailers to go the extra mile for their customers. 2ND ANNUAL RETAIL SUSTAINABILITY AWARD: STATE DEPARTMENTS OF AGRICULTURE MARKETING EFFORTS...... 50 SAFEWAY ...... 19 As the locavore trend continues, state efforts are more important — Green From The Ground Up and successful — than ever before, and your local state department of agriculture can play a major role in gaining customers’ dollars.

COMMENTARY THE FRUITS OF THOUGHT Tale Of Two Chains ...... 8 RETAIL PERSPECTIVE Packaging Cycles ...... 111 EUROPEAN MARKET Lessons Learned From The Volcanic Ash: Electronic Documentation Systems Needed .....112

TAKE STOCK IN RIPENED FRUIT PROGRAMS...... 58 Growers, shippers and retailers alike are realizing the selling power behind pre-conditioned fruit.

SOUTHERN VEGETABLES COMING ON STRONG ...... 64 In spite of an unusually cold winter, the South shall raise vegetables again!

SCORE BIG THIS SUMMER WITH SOUTH AFRICAN CITRUS ...... 72 More than ever, retailers have an exciting promotional opportunity as South Africa sits in the world’s sporting spotlight this summer.

Change Service requested: POSTMASTER: Send address changes to PRODUCE BUSINESS, P.O. Box 810425, Boca Raton, FL 33481-0425. PRODUCE BUSINESS (ISSN 0886-5663) is published monthly for $58.40 per year by Phoenix Media Network, Inc., P.O. Box 810425, Boca Raton, FL 33481-0425.

MAY 2010 • PRODUCE BUSINESS 3 MAY 2010 • VOL. 26 • NO. 5

96 IN EVERY ISSUE DEPARTMENTS

THE QUIZ ...... 6 ORGANIC PRODUCE MARKETING: Despite Obstacles, Organic Berries Continue To Gain Favor With Consumers ...... 76 WASHINGTON GRAPEVINE ...... 7 Pricing pressure and supply issues may create challenges for the organic berry crop, but retailers and consumers continue to request them. PRODUCE WATCH ...... 10 MERCHANDISING REVIEWS: RESEARCH PERSPECTIVES ...... 14 Sweeten Cherry Sales For Maximum Sales And Profits ...... 82 Maintaining shelf space, eye-catching displays and full-scale COMMENTS AND ANALYSIS ...... 15 promotions will keep consumers coming back for cherries.

FLORAL WATCH ...... 107 Mangos Continue To Be A Growing Segment...... 90 Understanding your store’s demographic and educating both consumers and produce staff INFORMATION SHOWCASE .....113 alike prove to be necessary techniques to encourage sales in this popular and growing category.

BLAST FROM THE PAST ...... 114 10 Sweet Ways To Sell More Stone Fruit Year-Round ...... 96 Flavor is paramount to future growth of the category.

SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE PUNDIT Universities Adopt An Advocacy Role And The Media Fails To Disclose That Advocacy: How Are Legislators And The Public To Decide On Food Safety? ...... 16

SPECIAL REPORT 90 DRIED FRUIT AND NUTS: WAL-MART PRICING REPORT How Packaging Boosts Sales In Dried Fruit And Nuts...... 104 ROUND XX Dried fruit and nut packaging meets the needs of different produce Philadelphia’s departments by catering to the needs of their different patrons. Competitive Landscape ...... 36 FLORAL AND FOLIAGE MARKETING: Floral Traceability: The Big Waiting Game ...... 109 As promising as using GTIN for floral may sound, other priorities and concerns continue to delay real-world application of the standard.

104

82 SPECIAL SECTION PACKAGING PORTFOLIO Inline Plastics Corp...... 56

Sambrailo Packaging ...... 57

4 PRODUCE BUSINESS • MAY 2010 Reader Service # 65 PRODUCE QUIZ

MAY 2010 • VOL. 26 • NO.5 THIS MONTH’S WINNER: President & Editor-in-Chief •JAMES E. PREVOR As a purchasing agent for Harry and [email protected] David, Sharon Smith knows fruit. “There are Publisher/Editorial Director •KEN WHITACRE Sharon Smith so many entities to Harry and David, and [email protected] Purchasing Agent fruit is a big part of our company. We source Special Projects Editor •MIRA SLOTT Harry and David Corp. all kinds of fruit for our gift baskets and we [email protected] Medford, OR grow our own Comice pears. I’m responsi- Assistant Editor •AMY SHANNON ble for purchasing fruit for all the gift bas- [email protected] kets,” she says. Smith has been reading PRODUCE BUSINESS Assistant Editor •JENNIFER LESLIE KRAMER for “at least five years, maybe six,” she says. [email protected] How To Win “As a fruit buyer, I find it incredibly helpful Circulation Manager •KELLY ROSKIN To win the PRODUCE BUSINESS Quiz, the first in finding information about new vendors, [email protected] thing you have to do is enter. The rules are fruit availability and fruit variety. It helps me Executive Assistant •FRAN GRUSKIN simple: Read through the articles and capture information on vendors I’m already [email protected] advertisements in this issue to find the working with and seeing what they have to answers. Fill in the blanks corresponding offer. Plus, I love the photography.” European Bureau Chief •ROBERT ZWARTKRUIS to the questions below, and either cut along Sharon appreciates the fact that every [email protected] the dotted line or photocopy the page, and day is different when you work in the pro- send your answers along with a business Production Director • DIANA LEVINE [email protected] card or company letterhead to the address duce industry. “There are a lot of challenges since fruit is so perishable,” she admits. “I listed on the coupon. The winner will be Production Leader • JACKIE TUCKER chosen by drawing from the responses buy a lot of tropicals that come from differ- received before the publication of our ent origins. I’m constantly thinking about Production Department FREDDY PULIDO July issue of PRODUCE BUSINESS. The winner whether the truck is too cold, if they made it must agree to submit a color photo to be on the boat or through USDA inspections. JOANNA ARMSTRONG published in that issue. Director of Online Communications JASON KAHAN WIN A PORTABLE LCD TV Trade Show Coordinator •JACKIE LOMONTE Haier’s portable 7-inch LCD TV lets you enjoy your favorite television [email protected] shows anywhere, anytime. A built-in tuner with detachable antenna Contributing Editors 1 provides crisp reception. A rechargeable battery offers up to 2 ⁄2 hours MEREDITH AUERBACH,CAROL BAREUTHER, THERESA BRAINE,KEN HODGE,HOWARD RIELL, of power. JODEAN ROBBINS DUARTE,MIRA SLOTT, BRYANT WYNES,JON VAN ZILE QUESTIONS FOR THE MAY ISSUE Advertising 1) What are the dates for the 2010 SIAL Global Food Marketplace convention?______ERIC NIEMAN,ASSOCIATE PUBLISHER [email protected] ______SANDY LEE 2) What children’s character has partnered with the Produce for Better Health Foundation to [email protected] encourage children to eat more fresh produce? ______BILL MARTIN [email protected] 3) What is the contact number for Thermal Technologies? ______Colleen Morelli [email protected] ELLEN ROSENTHAL 4) Who are the two individuals in charge of transportation at Nickey Gregory Co. [email protected] Floral Department Marketing ______E. SHAUNN ALDERMAN [email protected] 5) What is the address of Sun-Maid’s headquarters? ______Send insertion orders, payments, press ______releases,photos, letters to the editor, etc., to: PRODUCE BUSINESS 6) In what two cities does East Coast Growers and Packers Inc. have offices? ______P.O. Box 810425 Boca Raton, FL 33481-0425 ______Phone: 561-994-1118 Fax: 561-994-1610 E-mail: [email protected] PRODUCE BUSINESS is published by Phoenix Media Network, Inc. This issue was: ❏ Personally addressed to me ❏ Addressed to someone else James E. Prevor, Chairman of the Board P.O. Box 810425 Boca Raton, FL 33481-0425 Name ______Position ______Phone: 561-994-1118 Fax: 561-994-1610 Company ______Entire contents © Copyright 2010 Phoenix Media Network, Inc. Address ______All rights reserved. Printed in the U.S.A. City ______Publication Agreement No. 40047928 State ______Zip ______Phone ______Fax ______Photocopies of this form are acceptable. Please send answers to: MAY QUIZ PRODUCE BUSINESS • P.O. Box 810425 • Boca Raton, FL 33481-0425

6 PRODUCE BUSINESS • MAY 2010 WASHINGTON GRAPEVINE A report on the inside happenings of government.

SUBMITTED BY DAVID GOMBAS, PH.D., SENIOR VICE PRESIDENT, FOOD SAFETY & TECHNOLOGY • UNITED FRESH PRODUCE ASSOC. Technical Working Group Nearer To Closing The GAP “In the three weeks we are harvesting, we tral authority, these GAPs audit standards The process devised by the working have fifteen audits.” gradually diverged in dozens of ways. Today, group required two panels. The first panel is “I’ve had to hire a person just to chaperone that divergence has resulted in dozens of a Technical Working Group (TWG) represent- all the audits we have each year.” extremely similar, yet slightly different audit ing customers, suppliers, government, audit “The same auditor was here three times standards. These multiple standards result companies and produce association officials last year, to audit us to three different stan- in fresh produce auditees having to undergo from a broad scope of produce commodities, dards, because our customers won’t accept the — and usually pay for — multiple, redun- operation sizes and producing regions. Addi- same audit.” dant audits, some of which use conflicting tionally, to ensure no criticism of actions omments like these have become standards fostered by years without a cen- taken without full involvement and disclo- common throughout the fresh tral GAPs authority. The main consequence sure, the TWG requires a continually open produce industry. For more then of this aspect of the multiple-audit process is and active invitation to all stakeholders. 20 years, customers at every step increased costs, often without any improve- The second panel is a smaller, but influ- of the supply chain have been ment in food safety. This results in “audit ential Steering Committee of major industry Ctold, for the purposes of due diligence, to fatigue” and has begun to reach auditees’ representatives with the ability to drive verify the food safety and quality programs customers, who are now trying to accept broad industry acceptance of common stan- of their suppliers — but what they weren’t their suppliers’ existing audits in an effort to dards. The Steering Committee endorsed told was how to do so. Consequently, in the reduce costs, but lack an apples-to-apples the following vision and goal: absence of a universal standard, different rubric by which to compare the results of Vision: Develop a harmonized food safety parties devised their own, and in the the different audits. standard and checklist for GAP audits and glob- absence of cost or consequences, audit stan- ally-acceptable auditing process, necessary to dards that included only “necessary” The main protect consumers from potential hazards that requirements began to accumulate require- may contaminate produce at that stage of the ments that were “nice to have.” consequence of the supply chain, and that will build efficiencies into It has been more then a decade since the the supplier audit process. fresh produce industry had anything close multiple-audit process Goal: One audit by any credible third to a uniform food safety standard, with the is increased costs, party, acceptable to all buyers. FDA’s Guide to Minimize Microbial Food Safety Every bit the Steering Committee’s coun- Hazards for Fresh Fruits and Vegetables,com- often without any terpart, the TWG, which now numbers more monly referred to as FDA’s Good Agricultur- than 100 food industry professionals, has al Practices or GAPs Guide. Published in improvement in food been hard at work developing a harmonized 1998, that document has stood the test of standard. Rather than create another stan- time, remaining the basis of dozens of GAP safety. dard from scratch, the TWG invited all of the training and audit programs, and is still the major existing GAP audit organizations, primary GAPs guidance for most fresh pro- As a response to the increasing demand standard owners and commodity guidance duce commodities. However, the GAPs to stop the audit madness, the United Fresh documents to “donate” their standards for Guide was not written as an audit standard Produce Association’s Food Safety & Tech- consideration. The TWG is currently in the and was not accompanied by an authority nology Council commissioned a working process of considering the wording and stan- with which to consult on its interpretation. group in 2008 to devise a way to simplify dards in each and selecting the elements Consequently, anyone who was successful and harmonize the audit process. While best suited to meet the Steering Commit- in getting customers to buy their GAPs audit many in the past have tried to do just that, tee’s vision. services became somewhat of a de facto all have experienced only limited success in The work of the TWG will not be complete GAPs authority and their interpretation of the United States. Instead of repeating this until a standard has been developed that takes the GAPs Guide prevailed — for their cus- pattern, the working group chose instead to into consideration all types of fresh produce tomers and their auditees. analyze why previous attempts had not suc- GAP operations: by commodity, region, size Unfortunately, in the absence of a cen- ceeded, and tried something different. and type of production practice.

MAY 2010 • PRODUCE BUSINESS 7 THE FRUITS By James Prevor OF THOUGHT President & Editor-in-Chief Tale of Two Chains

ere is a tale of two large retailers, each proclaiming to do so without violating the other responsibilities. its interest in sustainability. Both are large chains; In other words, set up any group of environmental standards both have various pilot efforts; both an extensive that you choose, tell a vendor he can't get business without supply chain. Though there are many similarities, a meeting them, and he will meet them — but maybe at the price few minutes with each and an obvious difference of economic viability or at a cost to social engagement. Hsurfaces. One is heavily focused on ordering its supply chain to Safeway’s interpretation of sustainability neither involves a do things and sees the results of its sustainability push primari- strict vendor metric nor does it involve a distorted vision of sus- ly in terms of what it gets these suppliers to do. The other tainability that some retailers have adopted that sees the whole retailer, though collaborating with its supply chain on many sus- thing as a massive cost-reduction program. Safeway is not tainability issues, primarily sees sustainability as something it averse to profiting from sustainability, and the decision to has to do itself. invest in solar panels, fuel cells or wind energy is carefully It is that distinction — between sustainability as some- monitored to ensure it makes financial sense. On the whole, thing imposed on others and sustainability though, Safeway engages in sustainability as a primarily self-referential activity, almost as a form of higher consciousness in embraced by associates and engaged in which, through acute observation of its own because it is so compelling — that one business practices, it discovers opportunities finds the crucial reason PRODUCE BUSINESS for greater efficiency. honors Safeway with its Second Annual In a world filled with green-washing, Retail Sustainability Award. You know where some retailers issue more press releas- In many ways, Safeway, at least among es than they have accomplishments, Safeway large chains, is the most ideally suited to Safeway is is reticent about tooting its own horn. Yet, its embrace sustainability. In the first place, its accomplishments, expressed on its Web site, clientele, especially now that almost all different when are impressive: “Safeway was the first and stores have been converted to the Lifestyle only retailer to join both the Chicago Climate format, do not merely skew upscale, but you learn that a Exchange (CCX), the world’s first and North psychographically are more inclined to America’s only voluntary, legally binding green- value a commitment to sustainability. The person whose job house gas emissions reduction registry and trad- fact that so many of its stores are in Califor- ing program, and the California Climate Action nia, where electricity is expensive, makes focuses on Registry, the state’s official registry for green- many alternative energy options feasible. house gas reduction projects in 2006. Currently Finally, its Bay Area headquarters assures a “leadership Safeway is working with both organizations to roster of employees relatively well versed develop our carbon baseline. Through CCX, in the ethos of corporate social responsibili- development” Safeway is legally committed to reduce its car- ty and environmentalism. bon footprint by 6 percent from its 2000 base- Of course, a company can be perfectly coordinates its line by 2011.” positioned to take advantage of something The sustainability movement is in a bit of and neglect to do so, so credit is due to Safe- sustainability flux right now. It is not 100 percent clear way's corporate leadership for stepping up to how sustainability differs from a good man- the plate. You know Safeway is different effort. agement practice; it is not 100 percent clear when you learn that a person whose job how companies can balance the trend to focuses on “leadership development” coordi- achieve environmental accountability with nates its sustainability effort, because sustain- sustainability’s requirements for social and ability, in this way of thinking, is integral to economic engagement. leading every effort in the company. There What is clear is that Safeway has lever- are a lot of buzz words related to sustainability in produce: aged the enthusiasm of its people to carve its own way Organic, local, etc. — and Safeway engages with these terms as through the forest of sustainability. And that enthusiasm of well. In the end though, sustainability, must depend on the people doing things because they are so compelling is, in fact, intersecting of three responsibilities: environmental, social and the root of a successful sustainability program. PRODUCE BUSI- economic. So imposing metrics doesn't really make much sense NESS is proud to present Safeway with its Second Annual Retail because it is easy to meet any particular metric. What is hard is Sustainability Award. pb

8 PRODUCE BUSINESS • MAY 2010 Reader Service # 4 PRODUCE WATCH TRANSITIONS TO-JO MUSHROOMS PLANTATION SWEETS AVONDALE, PA COBBTOWN, GA Matt Lucovich was hired as director of sales and Rick Stock was hired to the sales staff and will marketing. He will be responsible for fresh retail work with a variety of commodities, including and foodservice sales as well as sales of processed Vidalia onions, sweet corn and sweet potatoes. He products. He previously worked for Creekside is based in Loveland, OH, and will handle sales in Mushrooms for 11 years, holding many positions the Northeast, Mid-Atlantic and Midwest. He most throughout the company, including growing, oper- recently worked as the general manager for ations and food safety and security functions. Castellini Companies.

RUSSET POTATO EXCHANGE INC. FRUIT PATCH BANCROFT, WI DINUBA, CA Kevin Wright has assumed the newly created Jeannine Martin has joined the sales team. She position of director of sales operations. His duties brings more than 35 years of product knowledge will include overseeing day-to-day operations, and has worked in all facets of the industry. She including transportation, logistics, customer most recently worked for Simonian Fruit service and vender managed inventory programs Company, and, in 2005, she became one of the and sourcing. His experience includes more than first women to head the sales department of a 20 years with Supervalu in regional and national major grower/packer/shipper of tree fruit and positions. table grapes.

Troy Thompson was hired as an account man- UNITED STATES POTATO BOARD ager. His responsibilities will include managing DENVER, CO sales for new and existing retail and foodservice Don Ladhoff will lead the retail efforts of the accounts. His experience includes 20 years in Domestic Marketing Program. He will provide key sales, most recently as a marketing associate input to strategy and guide the tactical execution with Sysco Foodservice -- Baraboo. of the program. He most recently served as the president of BrandForce, a full-service marketing agency he founded in 2008 that assisted clients such as Butterball, Chiquita and T-Mobile.

NATURIPE FARMS COASTLINE NAPLES, FL SALINAS, CA Robert Verloop was appointed to executive vice Jim Gipe was hired to the sales team. His duties president of marketing, a newly created position. will include participating in on-going efforts to pro- His duties will include advancing important mar- duce quality products and provide excellent cus- keting-related strategies. He joined Naturipe in tomer service. He brings more than 17 years of 2008 after he served in a series of senior-level mar- experience in the fresh produce industry, most keting positions at Sunkist, buyproduce.com and recently having spent six years at Dole. He brings the California Avocado Commission. an extensive amount of product knowledge and a deep understanding of the market.

Brian Bocock was named to the newly created A&A ORGANIC MARKETING INC. position of vice president of product management. WATSONVILLE, CA He has worked for Naturipe since its inception and Bernadette Walker was hired as a sales associate. has worked as vice president of sales since 2003. A recent graduate of Cal Poly San Luis Obispo, she Prior to Naturipe, he held a number of sales-relat- brings food experience from her recent work as a ed positions at Global Berry Farms, the predeces- marketing coordinator at U.S. Agriseeds. She is sor to what is now Naturipe. positioned to be a key part of the branding efforts at A&A, as well as an important part of the daily sales campaign.

Jim Roberts was promoted to vice president of Darrell Beyer was hired as a sales associate. His sales. His duties will include leading customer duties will include sales of A&A Grower's com- development initiatives and advancing growth modities and establishing broker deals with citrus with strategic accounts. In 2004, he was hired as and avocados. He brings experience in fresh pro- Naturipe's Northeast account manager before duce and has worked for Sundance Natural, Fresh becoming senior director of sales in 2007. He pre- Directions and Pure Pak. viously worked at Albertson's and Shaw's Supermarkets.

Produce Watch is a regular feature of Produce Business. Please send information on new products, personnel changes, industry, corporate and personal milestones and available literature, along with a color photo, slide or transparency to: Managing Editor, PRODUCE BUSINESS, P.O. Box 810425, Boca Raton, FL 33481-0425, or e-mail us at [email protected]

10 PRODUCE BUSINESS • MAY 2010 PRODUCE WATCH NEW PRODUCTS ORGANIC ITEMS FLAVORED ALMOND SNACKS San Miguel Produce, Oxnard, Mariani Nut Co., Winters, CA, has introduced CA, has added six new items to a new line of flavored almonds. Packaged in its Cut 'n Clean Greens line. convenient, 6-oz. resealable bags, initial fla- Organic products include vors include Wasabi & Soy, Honey Roasted, Rainbow Kale (blend), Garden Roasted & Salted and Natural. The new line of Greens (blend), Rainbow Chard whole, flavored almonds helps retailers capi- (blend), Hearty Greens (blend talize as more consumers recognize the heart- of collard and kale) and Collard healthy benefits of almonds. and Mustard. All are available in 8-oz. or 7-oz. clamshells. Reader Service No. 300 Reader Service No. 301

ABSORBENT POUCH ORGANIC SEED POTS FILLING SYSTEM Global Organic Specialty Source, Sarasota, Maxwell Chase Technologies, Atlanta, GA, FL, is now carrying a line of local Florida now offers its new high-speed MCT organic seed pots from Bethel Farms. The Absorbent Pouch Filling System, which seed kit comes in several varieties of herbs has been specifically designed to automate and vegetables, and includes organic seed, the process of weighing, filling and sealing fertilizer and a set of OMRI-listed 100 per- fresh-cut produce into MCT absorbent cent organic/biodegrable seed pots. pouches, resulting in a dramatic improvement in shelf-life of 12 to 18 days for fresh- cut fruits and vegetables. Reader Service No. 302 Reader Service No. 303

NEW APPLE VARIETY RESTAURANT-STYLE SALAD KITS FirstFruits Marketing LLC, Yakima, Misionero Vegetables, Gonzales, CA, has WA, unveiled Opal, a new apple expanded its Garden Cuts line by launch- variety grown in Washington and ing a new line of restaurant-style salad kits. recognized for its bright yellow The kits are available in four varieties: color with hints of orange blush. Its Iceberg Wedge, Romaine Caesar, Butter key attributes are a crunchy texture Wedge and Cosmopolitan. Each kit con- and sweet flavor with a Brix of 15- tains lettuce, dressing, condiments and 18. The marketing campaign for toppers. Opal has coined them “a new American jewel.” Reader Service No. 304 Reader Service No. 305

ANNOUNCEMENTS SALADWORKS NAMES SEASONAL SALADS RESEARCH COVERS IMPACT AFTER ITS FANS OF MANGOS ON CANCER CELLS Saladworks, Conshohocken, PA, announced The National Mango Board, Orlando, FL, the winners of its Create-Your-Own announced findings from a study conducted Powerhouse Salad Contest, which asked at Texas A&M University, which showed the fans to submit their own Powerhouse Salad polyphenolic compounds found in mangos creation based on ingredients from the new negatively impacted certain colon cancer and True Nutrition menu. The chosen salads, breast cancer cells. This study is the first step Lorrie's, Dana’s (pictured) and Joan, were in building a body of research that may bol- named after the winners and will be sold in ster the board’s marketing efforts with a Saladworks locations. Reader Service No. 306 stronger nutrition message for consumers. Reader Service No. 307

SCHNUCKS HOSTS FRIEDA'S DOMEX SUPERFRESH EXPANDS SPECIALTY CITRUS CLASS MARKETING EFFORTS Schnucks, St. Louis, MO, hosted Domex Superfresh Growers, Yakima, WA, is Frieda's Produce University, a working to get its apples and pears onto cruise fun, hands-on way for consumers to brighten up their winter with ships sailing from Miami, FL. With increased delicious varieties of specialty awareness of their health, cruisers are looking citrus. The 8-hour open house for healthful snacking options, and apples and took place at all Schnucks and pears offer them a convenient and familiar way Logli locations in Missouri, to do that. The varieties sold to cruise lines are Illinois, Indiana, Wisconsin, Red Delicious, Golden Delicious, Granny Iowa, Tennessee and Mississippi. Reader Service No. 308 Smith, Gala apples and D’Anjou pears. Reader Service No. 309

CRUNCH PAK PARTICIPATES OCEAN MIST FARMS TO UNVEIL IN NYC SHOWCASE NEW PACKAGING AT CPMA Crunch Pak, Cashmere, WA, is working to Ocean Mist Farms, Castroville, CA, will increase consumer awareness for its fresh-cut unveil a re-design of its bilingual packaging sliced apples by participating in a new food products showcase for national media outlets. for all fresh vegetable commodities at this The event, held March 24 in New York City, year's CPMA. Ocean Mist focused on three brought food and new product writers from mag- areas of improvement: produce visibility, azines, TV, newspapers and online media, nutrition information and consistent graph- together to sample new food products. Crunch ic design. The features of the new bilingual Pak showcased multiple items, including its BK packaging design are based on consumer Fresh Apple Fries and Disney Garden Foodles. Reader Service No. 310 research and input from retail partners. Reader Service No. 311

Produce Watch is a regular feature of Produce Business. Please send information on new products, personnel changes, industry, corporate and personal milestones and available literature, along with a color photo, slide or transparency to: Managing Editor, Produce Business, P.O. Box 810425, Boca Raton, FL 33481-0425, or e-mail us at [email protected]

MAY 2010 • PRODUCE BUSINESS 11 PRODUCE WATCH ANNOUNCEMENTS DUDA FARM FRESH FOODS PRODUCE GROUPS TEAM UP ADDS RECIPE PAGE TO SITE WITH SOMERSET MEDICAL Duda Farm Fresh Foods, Oviedo, FL, launched CENTER FOUNDATION Fresh Family Meal Make-Over, a featured page on Somerset Medical Center Foundation, its Web site showcasing how-to videos for nutritious which raises funding for the Somerset recipes in recognition of National Nutrition Month. Medical Center, in Somerville, NJ, The videos feature Veronica Moister (pictured), a joined the Eastern Produce Council certified nutritionist, life coach, personal trainer during its monthly dinner meeting at and busy mother of three. The Manor in West Orange. The March 16 meeting was sponsored by the California Strawberry Commission and Earthbound Farm. Reader Service No. 312 Reader Service No. 313

INDUSTRY VETERANS FORM CAMA DEVELOPS BLACKWATER PRODUCE MOTHER'S DAY PROMOTION Veterans Harry Sheaffer, Steve Sterling The Cameo Apple Marketing and Sean Cornelius formed Blackwater Association, Wenatchee, WA, has intro- Produce LLC, of Lake Park, GA, on duced a Mother's Day promotion with February 17. All three were previously in-store signage and recipe pads featur- with Marker 29 Produce Inc. The partners ing an omelet filled with Cameo apples and Brie cheese for use on retail shelves will continue operations in Florida, North during the weeks leading up to Mother's Carolina and Michigan. Blackwater has Day. Spring continues to be a significant partnered with The Coggin, a farming opportunity to grow apple category sales operation. by emphasizing the Cameo variety. Reader Service No. 314 Reader Service No. 315

MAMAMIA ENTERS THE MEXICAN FORTUNE 500 RANKS CH ROBINSON HASS AVOCADO MARKET NO.1IN TRUCKING,TRANSPORTATION, MamaMia Produce, East Rutherford, NJ, intro- LOGISTICS duces its MamaMia brand Mexican Hass C.H. Robinson Worldwide Inc., Minneapolis, Avocados. The company has been growing, MN,wasnotonlyincludedonFortune’s 2010 list packing and shipping Hass avocados from the of World's Most Admired Companies, but was Dominican Republic for years. In December, ranked No. 1 in the Trucking, Transportation the company will have the option to offer its and Logistics category. The magazine's selec- customers product from the Dominican tions were based on nine criteria ranging from Republic or Mexico. investment value to social responsibility. Reader Service No. 316 Reader Service No. 317

MANN PACKING OFFERS MULTIPLE GLOBAL ORGANIC PARTICIPATE SPRINGTIME PROMOTIONS IN FIGHT AGAINST CANCER Mann Packing Co., Salinas, CA, launched multi- Global Organic Specialty Source Inc., ple promotions to support its sales program. The Sarasota, FL, participated in the fight 3-month long promotions include redeemable against breast cancer by donating a portion coupons on a variety of products, including 8-oz. of all February sales of Pink Lady Apples Stringless Sugar Snap Peas, 6-oz. Snow Peas, to Susan G. Komen For the Cure. Thanks Mann's Sweet Potato or Butternut Squash prod- to the great efforts of Global Organics' sales team ucts and Mann's Broccolini. and strong support from customers throughout the Southeast, more than $1,200 was raised. Reader Service No. 318 Reader Service No. 319

NYAA, GROCERS TEAM UP OCEAN MIST PARTNERS WITH TO FIGHT CANCER CALIFORNIA BUTTER The New York Apple Association, Fishers, Ocean Mist Farms, Castroville, CA, part- NY, and New York apple growers, on behalf of the 42 participating supermarket nered with the California Milk Board on a chains, have once again donated $25,000 cross-promotion for the month of April. to the American Cancer Society as part of The offer included an instant redeemable an ongoing effort to help fight cancer and coupon for 55 cents off any purchase of raise awareness of the cancer-fighting California butter with the purchase of an benefits of eating apples. Ocean Mist Farm artichoke. More than 500,000 IRCs were affixed to artichokes sold Reader Service No. 320 in Western California retail stores. Reader Service No. 321

VIDALIA SWEET ONIONS AND SHREK MASTRONARDI PRODUCE/SUNSET TEAM UP TO BOOST SALES EARNS INNOVATION AWARD The Vidalia Onion Committee, Vidalia, GA, has Food & Beverage Magazine announced its 2010 partnered with DreamWorks Animation, SKG Inc., Innovation Award Winner and Mastronardi to promote the original sweet onion in conjunction Produce/SUNSET, Kingsville, ON, took top hon- with the release of Shrek Forever After, premiering ors in the Kid-Friendly Produce Innovations cate- May 21 nationwide in 3D, Imax and other local the- gory, thanks to the company's emphasis on fla- aters. Produce managers are invited to build Shrek vor, unique size, shape and affordability. The and Vidalia onion in-store displays. The most cre- awards were given to companies that have gone ative entry will win a three-day, two-night fairytale vacation for four to above and beyond expectations in innovations. Orlando, FL, including theme park admission and more.Reader ServiceReader No. Service 300 No. 322 Reader Service No. 323

Produce Watch is a regular feature of Produce Business. Please send information on new products, personnel changes, industry, corporate and personal milestones and available literature, along with a color photo, slide or transparency to: Managing Editor, Produce Business, P.O. Box 810425, Boca Raton, FL 33481-0425, or e-mail us at [email protected]

12 PRODUCE BUSINESS • MAY 2010 NEW ENGLAND RETAILER OF THE YEAR AWARD PRESENTED AT THE NEW ENGLAND PRODUCE CONFERENCE ON APRIL 24, 2010, BY Produce Business AND THE NEW ENGLAND PRODUCE COUNCIL hael Magu Mic ire

Excerpt from the speech by Ken Whitacre, publisher and editorial director of PRODUCE BUSINESS

strong work ethic. A passion for as much as two hours away. produce. A knack for getting value for Work or play, he shows his passion for pro- A his customers. These are just a few of the duce in many ways. A colleague offered these com- ways colleagues, co-workers and competitors describe ments: “I met him when I was a produce manager and he this year’s 6th annual New England Produce Retailer of the Year. was a district supervisor. He is extremely knowledgeable, a stickler for This is an honoree that you — the members of the New England Produce details and knows the industry inside and out. He’s also a good teacher. I Council have chosen — and that PRODUCE BUSINESS is pleased to award always learned something from him. When I moved up to buyer, he taught today. me the ropes.” Like the first five recipients of this award — Paul Kneeland, Jack Salamon, Even on vacation, our honoree can’t stop thinking about produce. Domenic D’Antuono, Will Wedge and Mike Giza — this year’s honoree “He’ll go out and visit competitors’ stores and maybe a grower or packer began his career in the produce industry at an early age. His first job, given where he’s staying,” says one colleague. His son, who also is in the busi- to him at age 16 by a store manager of the chain where he would work for ness, adds that it’s usually only three to four days into a week-long vaca- more than 40 years, was to cut the lawn in the front of the store. tion before he gets a call from his Dad to ask, “What’s the market doing?” This gave him a foot in the door and the rest, as they say, is history. One trait many in the industry noted about our honoree was his knack He soon moved up to bagging part-time, then clerking part-time in pro- for value, his unique way of getting value from a manufacturer and a deep- duce, and in 1970, to he moved to full time produce clerk for the princely er deal for the customer. wage of $2.50 per hour. Over the years, he climbed the career ladder to A vendor put it this way: “He’s a master at squeezing extra money out produce supervisor, buyer and head buyer. He is now running the entire of people. There’s no bull, though. If he tells you he can move X amount of produce operation as director of produce and floral for the 62-store chain. produce and give you X ads and a certain amount of display space for X This career trajectory is something his supervisor, the director of oper- price, he does it. That’s how he’s built so many good relationships in the ations for the chain, applauds and describes this way: “He is a wonderful industry over the years.” person. Fun to work with and, at the same time, he is serious and capable Outside of work, sports are also a consuming passion. For example, his when it comes to work.” sons recall how their father not only attended their football and baseball Our honoree’s work ethic and dedication to the job has revealed itself games, but also coached the team. “My father always made time for his in many ways. In fact, his colleagues call him a “24-hour produce guy.” family,” one son asserts. “For example, we’d see him up by the car in the He’s in the office at 4 am, home after six in the evening, six days a week parking lot on his cell phone finishing out the day. Then, he’d come hit a and talks about produce while he grills the family dinner on Sundays. ground ball in his suit and tie.” He often takes his grandson to work with him on Saturdays. “It’s the He’s a Red Sox and New England Patriots fan, an avid boater with a sec- family joke,” says his son, “that my nephew will walk in and tell the pro- ond home on Lake Winnipesaukee and a budding golfer. The only thing duce manager where he needs a color break. My father is building those remotely negative friends would say about our honoree is that he thinks he produce industry roots right down to the next generation.” is good enough to get his golf handicap down to 10. Colleagues also remember more than one occasion when weather or Ladies and gentlemen, please join me in congratulating the 2010 other problems held up a delivery and our honoree would load up his Ford New England Produce Retailer of the Year — Michael Maguire of truck with as much produce as possible and drive it to stores, sometimes DeMoulas Market Basket.

MAY 2010 • PRODUCE BUSINESS 13 RESEARCH PERSPECTIVE

BY DARREN SEIFER, U.S. FOOD AND BEVERAGE INDUSTRY ANALYST, THE NPD GROUP INC. Fresh Produce and Variety Can Drive Store Traffic and Build Loyalty

new study by The NPD Group, shows charge of their children’s snacking habits. 58 percent of primary household Over the last 10 years, fruit has grown to shoppers report that liking a store’s become the top snack food for kids, particu- A produce is one of the reasons they reg- larly kids between the ages of six and 12. ularly shop at a particular store. Hav- This hints at opportunities for retailers to ing consistently fresh produce and a wide selec- adjust their fruit sections to accommodate tion is of great importance to getting these con- snack-minded consumers. sumers to walk into the store. Furthermore, the As we move into the next 10 to 20 years, emphasis on produce grows as we age. When producers and retailers alike must take into looking at consumers 65 and over, liking a account the aging Boomer population. Mak- store’s produce as a main reason for loyalty ing up roughly 25 percent of the U.S. popula- Charts courtesy of The NPD Group rises to 62 percent among primary shoppers. tion, this generation will see kids leaving the This research, an example of the Shopper served as a side dish, particularly at dinner. Insights available from NPD’s National Eating Produce marketers and retailers should con- Trends service, which has tracked the daily eat- sider either cross-marketing or placement ing habits of Americans based on their person- strategies that more closely align with con- al food diaries since 1980, also reveals some sumers’ dinner plates. For example, when channels are doing much better at attracting looking at all dinners containing a vegetable these consumers than others. For instance, a side dish, chicken, beef and pork are the top greater percentage of shoppers who are more center-of-plate dishes served in those loyal to conventional supermarkets/grocery instances. According to NPD’s National Eating stores say they like the produce at those stores Trends, sandwiches and burgers are also top more than shoppers of natural/gourmet stores main dishes at dinnertime; however they are who specialize in organic produce. At first it seems counterintuitive, but peeling back the layers of the onion shows that the natural home and parents entering retirement years channel is best at attracting people who are — or at least planning to retire. Fruit and looking for unique items as well as organic vegetable consumption tends to increase as food and beverages. However, this channel consumers age, in many ways related to also pulls in produce-minded consumers who NPD’s National Eating Trends reports the may be loyal to other food channels, but are average older Boomer consumed fruit 173 willing to shop around for produce. This still times in 2009, while those same consumers emphasizes the importance of produce to the averaged only 118 times in 1999. The same natural channel, but also highlights opportuni- goes for vegetables. Now, older Boomers, ties for other channels to increase their basket less likely to be consumed with vegetables. those born between 1946 and 1955, consume sizes with produce offerings. There has also been much concern recent- vegetables about 175 times per year, but in In addition to the retail environment, it’s ly surrounding the eating habits of children 1999, their frequency was 149 times. important to look at produce in the full con- and how this might be contributing to obesity. The findings from NPD’s National Eating text of eating since vegetables are often A recent study conducted by the University of Trends and its Shopper Insights data show North Carolina showed that kids are snacking that the quality and freshness of produce The NPD Group, headquartered in Port Washington, on about 586 calories per day, which is up drive store traffic and builds retailer loyalty. NY, is a leading provider of reliable and comprehensive consumer and retail information for a from 418 in 1977. While it is true that kids Understanding the life stages of consumers wide range of industries, including the food and often snack on sweets and savory items, the and their mindset about produce will help beverage and foodservice industries. silver lining is that parents seem to be taking increase store traffic, loyalty and dollars.

14 PRODUCE BUSINESS • MAY 2010 COMMENTS AND ANALYSIS

BY JIM PREVOR, EDITOR-IN-CHIEF, PRODUCE BUSINESS Put Consumers First

t is good news, and an important asset for the industry, that consumers value produce so highly that the vast majority I identify liking a store’s produce as one of the reasons they select to consistently shop at a particular store. he bottom line is that the industry could The positive response to this question raises, as good research often does, another sell a lot more produce if it could break the question: What does it mean for a consumer to “like the produce” at a particular store? T departmental barrier. One interesting query: Is this a set-point question? That is to say... is there some base line of acceptability that must be reached for consumers to consider making a store their regular shopping venue, but once that set- point is reached, consumer concerns move on to other issues, such as location or the condition of the deli department, and further to allow the purchase of many organic items, though, someone will figure out how to put improvements in the produce department will or D) That “liking the produce” includes consumers first and that will be a win for no longer motivate that individual consumer? thinking the prices are reasonable and organic them, and the produce industry. Or does further improvement of the produce sometimes fails to meet that measure. It is interesting that the study finds that department further motivate that consumer, The study artfully notes that produce is fruit is now the No. 1 snack for children perhaps outweighing an inconvenient loca- not an island and that people often consume between the ages of six and 12. Intentionally tion or poor meat department? produce in the context of meals. Protein main or not, the industry has been adjusting to this It is also not clear to what degree various courses are often served with vegetable side with the growth of products such as Clemen- elements contribute to “liking a store's pro- dishes, and burgers and sandwiches, though tines, which are lunch-box-friendly, seedless, duce.” Is this mostly about appearance, is it less often served with produce side dishes, etc. One challenge for the industry is how to the historical experience with flavor and often incorporate produce right into the item. extend those convenient offerings into the taste, is it assortment, is it price, or is it carry- Departmental merchandising makes sugges- teenage years when the lure of fast food and ing organics? tive selling more difficult. Here is a situation junk food hits full stride. It also is intriguing that consumers at con- where consumer research runs straight into The aging of the baby boom offers both ventional stores “like the produce” at those the bureaucratic inertia of old ways of doing opportunities and challenges. Demographics venues more than consumers at natur- things. No less a group than the Food Market- are always local, so it doesn’t matter to a al/organic stores “like the produce” at those ing Institute, the supermarket industry trade retailer that the national average is getting stores. Perhaps the natural/organic con- association, recognized this problem and tried older if its stores are in areas flooded with sumers are more attracted to other things at to wrestle with it through its old Meal Solu- young immigrants. Once again, we confront their stores and experiment with various tions Conference. the question of knowing a fact — that the alternative-purchasing venues for produce — There are a hundred problems to tran- older population is increasing — and still one can imagine this clientele not liking the scend — compensation schemes, account- needing to define what will satisfy this produce as much in a natural or organic foods ability issues, etc. — but the bottom line is demographic. One thing to keep in mind is store because they prefer farmer’s markets or that the industry could sell a lot more pro- that one person’s luxury is another’s neces- various forms of Community Supported Agri- duce if it could break the departmental barri- sity. So a sliced or diced onion may be a con- culture. The more obvious implication, er. Ramping up cross-merchandising efforts venience item to young people, but as the though, is that stores that focus on organic is part of the solution, and innovative pro- so-called “old-old” population — those over produce either A) Are frequently out of stock grams such as the Publix Aprons program, 85 years old — increases, you increasingly on items or have a smaller assortment, B) which includes cross-departmental product have people for whom cutting is dangerous, Are in-stock only with conventional alterna- being used in a meal demo and continuing painful or impossible. For those folks, the tives, C) That the quality standards are bent recipe series, is also helpful. One day, same product is a necessity.

MAY 2010 • PRODUCE BUSINESS 15 From The Pages Of The Perishable Pundit Universities Adopt An Advocacy Role And The Media Fails To Disclose That Advocacy: How Are Legislators And The Public To Decide On Food Safety?

From Jim Prevor’s Perishable Pundit March 20, 2010

e wrote a piece that was published by Pajamas Media titled, Georgetown, as the Produce Safety Project has aprioridetermined that the “At the Corner of Food Safety and Media Bias.” Here is an correct policy response to food safety concerns is that the FDA should estab- W excerpt: lish mandatory and enforceable safety standards. Where this leaves stu- If universities are biased and the media is lazy, how are we sup- dents or faculty members who might think differently or whose research posed to develop intelligent public policy? Food safety is a case in point. might lead in a different direction is hard to say. There seems to be no place At first glance, it appears that there must be momentous news regarding at Georgetown for those who might say that the USDA, rather than the food safety. Business Week blared the headline, “Food-borne Illnesses in FDA, should play a bigger role, or that societal resources should be invested U.S. Cost $152B Annually;” the Los Angeles Times trumpeted, “Cost of in reducing automobile accidents rather than establishing mandatory FDA Food-borne Illnesses is Deemed Much Higher Than Earlier Estimates;” USA produce safety standards, or that “farm to fork” standards, presumably Today declared, “USA Pays Price for Food- including “mandatory and enforceable” sanctions borne Illness: $152B a year.” All the noise was against consumers — that’s the fork part — are too generated by a paper written by Robert L. intrusive. The thinking has already been done. Scharff for the Produce Safety Project at The real story As upsetting as Georgetown’s abandonment of Georgetown University. Dr. Scharff is an assis- the spirit of free academic inquiry may be, the tant professor in the Department of Consumer might be that a wholesale failure of so much of the media to report Sciences at Ohio State University and once comprehensively on this paper and its publication worked at the FDA as an economist. university has is simply astounding. The paper causing all the hullabaloo is Although most media reports credited George- titled “Health-Related Costs From Food-borne allowed its good town University with the study — ABC News,for Illness In The United States,” and whatever example, identified the study as “an initiative of the the merits of the paper, the whole enterprise name and Pew Charitable trusts and Georgetown University” shows the utter collapse of both academic and — virtually no media outlets took the time to journalistic standards and the difficulty this credibility to be explain that the study was published by a self-proposes for the making of public policy. hijacked by an fessed advocacy center that has as its mission the A mere glance at the website of Produce enactment of specific policy goals. Safety Project, identified as “an initiative of advocacy group As to the validity of the study, it also seems to The Pew Charitable Trusts at Georgetown be the case that virtually no media outlets reported University,” shows instantly that this “pro- and that the that the study was not submitted to an independent ject” and any standard of academic inquiry journal for peer review. Although three economists are inimical. Right on the front page of the science is weak. are thanked in the footnotes for providing indepen- Web site the purpose of the Produce Safety dent review — the review was obviously not Project at Georgetown University is defined: This is a problem anonymous — it is not clear who selected the “The Produce Safety Project at George- on an issue like reviewers or what their affiliations are. Also, no town University seeks the establishment by mention is made that one of the reviewers co-wrote the Food and Drug Administration of food safety, but it is a book with the author of the study. mandatory and enforceable safety stan- Although many media outlets plucked out from dards for domestic and imported fresh pro- just as big a the various crosshatches of data items of interest to duce, from farm to fork.” their states or industry, few seemed to have noticed Now, I bow to nobody in my pursuit of problem on all that the many pages of data are based on a whole safe produce. Four generations of my family series of assumptions that may or may not be have worked in the produce industry here in public policy issues. accurate. To start at the very base, are there actual- America, and I’ve built a career speaking out ly 81,910,799 cases of food-borne illness in the Unit- on food safety issues. But can I possibly be the only one who thinks that ed States, as the study claims? Perhaps, although despite laws requiring Georgetown University disgraces itself by having such an entity use its physicians to report illnesses caused by the most dangerous pathogens, the name? After all, the purpose of a university is to foster free inquiry and CDC can’t produce names equating to even 1 percent of that number. research, to encourage the exploration of new ideas and to encourage people The number used in the study is a theoretical construct based on an to think deeply about various subjects. unproven under-reporting factor. In fact, the number of food-borne illnesses Apparently, though, free inquiry and research are no longer needed at is so theoretical that in almost 82 percent of the claimed cases of food-borne

16 PRODUCE BUSINESS • MAY 2010 Reader Service # 11 From The Pages Of The Perishable Pundit www.perishablepundit.com

illness, or more than 67 million cases, there is no known agent that caused a fully informed and educated populace. the supposed cases of food-borne illness. Reporters get a study in the in-box and instead of vetting the study, Most importantly, though the headlines of the press release, “Food-borne they trumpet the study findings. All too many reporters don’t realize Illness Costs Nation $152 Billion Annually: Nearly $39 Billion Loss Attrib- what the job actually is. They think the story is whatever the study’s uted to Produce,” were repeated ad infinitum in media outlet after media sponsors say it is, but as the song goes, “It ain’t necessarily so!” outlet, few dug into the study to explain that these headlines don’t carry the The real story might be that a university has allowed its good name meaning that people would typically attribute to them. and credibility to be hijacked by an advocacy group and that the science If your neighbor just got out of the hospital and you asked how he was, is weak. This is a problem on an issue like food safety, but it is just as big and he reported that he was fine, but his illness cost him thirty grand, you a problem on all public policy issues. might think that he was referring to the actual hospital bill — that he or his We’ve been fortunate to work with a lot of earnest and well-intend- insurance company actually wrote a check for that amount. Maybe you ed reporters at newspapers and other consumer media. But very, very would think it was the hospital bill plus lost wages. If you later found out few remain full-time reporters on food and ag. Many have started out that your neighbor included in his complaints the value of the decline in the their conversations with us by explaining they were the real estate quality of his life while he was in the hospital, you might think your neigh- reporter, but had been thrown into reporting on the Salmonella Saint- bor a bit deceptive — or daffy. paul outbreak! Yet on the largest single category the author of the study identifies — With newspaper staffs getting smaller, the chances of having an ag those 67 million-plus people whose supposed food-borne illness is caused by expert available to do a story becomes less and less. Yet with the 24/7/365 unknown agents — almost 63 percent of the “cost” of these illnesses are due culture of the Internet and cable news, the pressure is on to produce to declines in the quality of life, an enormously subjective measure. Another pieces quickly. Combine inexperience with speed — and you have some- 30 percent of the “cost” of food-borne illness for these cases comes from thing dangerous indeed. inputting the value of $7.9 million for a “statistical life” if someone dies. Only I ended the piece with these lines: about 7 percent of the so-called “cost” of food-borne illness in this large cate- There are arguments on all sides of these issues, but the sad part for gory represents actual payments made to anyone, and even that is just an our country is that neither legislators nor the citizenry can rely on infor- estimate. mation from universities or the media in trying to come to a position on The issue of what do about food safety is complicated. There are the matter. Whether due to advocacy or sloth, this failure of institutions many options and many priorities to consider. What is clear, though, is poses grave risks to the decision-making process of our country on food that the media is not doing the job we need to have done if we are to have safety and all public policy matters. Reader Service # 86

18 PRODUCE BUSINESS • MAY 2010 GREEN FROM

PRINTED ON RECYCLED PAPER THE GROUND UP

BY MIRA SLOTT

bout two years ago, Safeway executives had an epiphany. Championed under the umbrella of Corporate Social Responsibility (CSR), they devised a strategy to infuse sustainability into the company’s bloodstream, with a special place for produce at its heart. “We developed our vision at the beginning of last year to be the premier grocery retailer in corporate social responsibility and make an important and measurable difference with respect to sustainability,” says Christy Consler, vice president of leadership development A and sustainability for the Pleasanton, CA-based retailer of 1,725 stores under multiple banners, including Pavilions, Carrs, Vons, Ran- dalls, Tom Thumb, Genuardi’s and Dominick’s. The latter part of Consler’s expanded title encapsulates the Safeway’s emboldened CSR concept. “A

MAY 2010 • PRODUCE BUSINESS 19 SAFEWAY’S GREEN LEADERS Accepting the 2010 Retail Sustainability Award — flanking PRODUCE BUSINESS Editor-in-Chief Jim Prevor — are (left to right): Joe Pettus, senior vice president, fuel & energy, Christy Consler, vice president of leadership, development and sustainability, and Geoff White, group vice president for produce and floral.

lot of people wonder how leadership and sus- consequences of doing so. Safeway, however, devoted to bringing together all of the compo- tainability fit together,” Consler says. seems to have intermeshed these four plat- nents the company works on relative to sus- The integrated policy hit a transformational formsintoeachdepartment’soverallstrategies, tainability, because there are so many compo- turning point when the progressive leadership often pulling strengths from one department nents. We have identified hundreds of initia- resolved to put more focus on CSR and knit into the other to provide synergies that couldn’t tives within this organization… from perish- together all the different, multi-faceted sustain- be attained alone. When looking at Safeway’s ables, from produce, from supply, from retail. ability initiatives scattered piecemeal across entire sustainability program and the interrela- So we are cautious to commit to any one thing the company. “We decided as a company that tionships connecting the people involved, one without it filtering up and discussing it as a we wanted to make sustainability a part of might visualize a circle of leaders all relying team and as a group so that we’re consistent,” how every leader operated, and we wanted upon each other to make the sustainability says Burnham. “What we don’t want is for everybody to operate with that mindset. One “wheel” move forward. produce to take one avenue while non-perish- of our senior executives, Larree Renda, execu- ables takes another avenue. We’re committed tive vice president, chief strategist and admin- Group Decisions to getting all the facts and doing the appropri- istrative officer, said, ‘Hey, as we’re putting It is easy to agree on saving energy and ate due diligence of studying all the potential together a more formal coordinated strategy in avoiding waste. Yet choosing to buy locally in outcomes,” he adds. educating the leaders across the company on an effort to reduce food miles and carbon foot- Geoff White, group vice president for pro- this, I want to make sure that we bake this prints may not necessarily be more environ- duce and floral, is quick to acknowledge, “We right in to our leadership development plan.’” mentally friendly, based on alternative produc- don’t have all the answers yet, but there are Consler helps manage and coordinate the tion methods, supply chain efficiencies and some initiatives we’ve built baselines around, efforts of the broad CSR task force, involving numerous other factors. The choice to buy and programs like packaging that are relatively senior leaders from across all functions and locally presents social issues. For example, easy to figure out, or at least it’s easy to base- departments, who work together to develop eliminating an import program in favor of line yourself and show what kind of improve- overall strategy and then specific measurable locally grown could lead to the displacement ment you can have from there,” he says. goals around four strategy platforms: Commu- of hundreds of thousands of struggling farm Regardless of the challenges, he continues, nity, People, Planet and Products. workers in a third-world country. “We’ve made a significant commitment as an The vast scope of these varied platforms The produce team is fully aware of the organization in manpower and funding to do could be difficult to get one’s hands around. complexities. “I’ll tell you that the decision the right thing.” Companies pursuing sustainability objectives doesn’t rely on anyone’s sole shoulders,” says Doing the right thing, however, is often often isolate these into silos, and target one at Steve Burnham, vice president of produce. “As open for interpretation. Safeway’s premise is the expense of another, yet fail to grasp the an organization, we have an entire task force that these policies often overlap, interconnect

20 PRODUCE BUSINESS • MAY 2010 Reader Service # 22 “The big thing we’re focused on now is operate in, according to Consler. “It all comes down to engagement — engaging individual really taking this far beyond the task force employees, engaging leaders, really making the objectives clear and enlisting people’s help in down to every employee so that everybody the difference that we can make.” knows how they can make a difference, In a company of this size, people’s actions can produce meaningful impacts. “We don’t both formally with their performance want people to feel, ‘Oh, this is an added bur- objectives and ensuring those link up to den, I have to save the planet…’ It’s just nice to feel like you’re part of something bigger supporting one of our CSR strategies.” and it’s more than just a job,” she says. Despite lofty ideals, Safeway is still a busi- —CHRISTY CONSLER ness that needs to remain profitable. “This is a broader way of thinking about our business and reverberate off each other, and therefore Thecompanyhasanumberofemployee cannot be tackled randomly. All must be network groups, and the Green Team is one of addressed congruently when conducting the newest. There is a Green Team at the cor- cost/benefit analyses to best determine where porate level, but also out in the divisions, and and how to invest money and resources for some of the divisions have started to form maximum benefits. More specifically, sustain- green teams or committees, according to Con- ability initiatives need to take into account the sler. She points to Vons in Southern California, entire lifecycle of the product and its broader which has a very active group doing impres- impacts on society. sive work to become more sustainable inter- Safeway’s sophisticated top-down nally and through community involvement in approach also shares a strong bottom-up com- projects ranging from recycling to breast can- ponent. “The big thing we’re focused on now cer awareness and fundraising drives. Safeway is really taking this far beyond the task force discovered it could really engage the hearts down to every employee so that everybody and minds of employees in ways it hadn’t knows how they can make a difference, both before, she explained. formally with their performance objectives The produce team has jumped into the pro- Christy Consler, vice president of leadership, and ensuring those link up to supporting one gram full force, and finds it empowering. development and sustainability of our CSR strategies,” says Consler. But then “Although we have a company-wide task also personally, how they can contribute, how force, each business unit is taking it upon itself the simple things that they do every day make to educate ourselves on sustainability as it a difference at home and at work, she adds. relates to our area of expertise,” says Burnham. To drive the overall strategy, Safeway is “What it really boils down to are the people. asking leaders to set business performance The people that make up this department that objectives and direct their teams to do the have a passion for this, that spend the time same. The company also wants to create a educating themselves and that help counsel us. dynamic environment on the ground, where We have a volunteer task force within produce employees can have a voice in the process. committed to nothing but sustainability, which Initially, says Consler, “We had the employees meets every month. It does not matter if you’re from across the company come up with a list, an analyst or if you’re a vice president...you’re and compiled over 300 different separate ini- all welcome to be part of this task force tiatives of things currently being worked on or becausenoonehasabadidea.Thenwetake in development and ready to be implemented. those ideas and become further educated and Geoff White, group vice president for We started with the bottom up and then took try to drill down to the facts.” produce and floral an inventory, asking how these naturally group together, and out of that is how we Buying In To The Big Picture developed the strategy platforms.” Mandating new sustainability directives The next challenge is keeping the process within a company, and further down the sup- fluid. “Already, people can share their ideas ply chain, wavers a fine line between a wel- with the store managers and district managers comed opportunity and an unwelcomed bur- and that bubbles up to division presidents who den. Linking the whole CSR and HR function can share them with us,” Consler continues. with sustainability is a unique proposition, a “But we’re also looking to formalize it more and concept other companies may want to emu- have actual CSR champions in each of the late. You can have the best strategy in the stores, districts and divisions so people know world, but it will fall woefully short if you that their ideas were evaluated.” Safeway is don’t have people who care about it, under- working on putting a more official path in place, stand it and embrace it. a structure across each of the 10 divisions, with Employees need to know that what they do regular conference calls to share Best Practices makes a difference, not only to the company’s Steve Burnham, vice president of produce and disseminate them more quickly. results, but to the community and the world we

22 PRODUCE BUSINESS • MAY 2010 Reader Service # 39 24 Reader Service # 25 Reader Service # 60 RDC UIES•MY2010 MAY • BUSINESS PRODUCE u ngm n o egtteei through Practices.” is Best there earth-friendly get and been we sustainable has how and quality endgame produce, our ask in the to priorities satisfy were our and you me “If business Burnham. a says drive consumer,” to here we’re business ini- Consler. to a green according from so standpoint, significant loyal, more become be tiatives LOHAS to that tend found shoppers strategic has and Safeway analysis planning. market firm provides research that a market years Institute, PA-based of Marketing Harleysville, number Natural a the for monitor- through been customers has LOHAS and ing peo- Safeway, how perceive on ple research regular conducts group anblt eoda nipratconsideration. sus- important company’s an as a record rank tainability and But also what, atmosphere. shoppers matter economic LOHAS no this drivers in and key especially price the that are parties and value third studies from consumer research has own other It its shoppers. from LOHAS learned Safeway with Sustainability. high the and indexes for Health ago of years Lifestyle — 10 LOHAS shopper: over sustainability coined quintessential term executives a Safeway sus- use Safeway’s attracts. consumer strategy of tainability kind the for Mecca envi- this in sense defi- of we Consler. lot says so a ronment,” makes us, it for think vehicle nitely are growth products a sustainable certainly more friendly These environmentally focus]. [Safeway’s an Right with bil- Organics, Eating brands a O and half from Green over revenue Bright had in we’ve dollars past know lion the I “In years, productivity. five greater cost and generate savings sus- propositions many business because tainable well fits mantra tainability cutting Consler. says for efficient,” opportunities more being of and full costs also line, with top it’s the flush but growing it’s growth, how for opportunities about talk We strategy. upyCanInvolvement Chain Supply ob ato hsts oc eas no because force idea.” task bad this a of has one part a if welcome be or all to president...you’re analyst vice an you’re a you’re if matter It not month. does every meets but which sustainability, nothing to committed produce W a ee ogtteedgm and game end the forget never can “We aea’ aktn n osmrinsights consumer and marketing Safeway’s a are stores Lifestyle Safeway’s fact, In sus- a environment, economic fragile a In edrprnrhp lya nerlrl in role integral an play partnerships Vendor W aeavlnerts oc within force task volunteer a have “We I esbc ota edrhprl sa indus- an as role leadership that to explains. can back he they gets utilization, “It more crop and much water so with harvesting do is proper there and but with safety practices, book food the to wrong. by regard aren’t everything that follow school practices They old growing practicing of just kinds Onions, are Gill’s others like advanced, while White. highly says are sustainability,” Some with growers our evolv- always regards in Burnham. is that explains a it or ing,” than this because be us sustainability to for has to Practices it that Best line about hard sustainabil- more now, is right safety ity “For food vital. and are GAP practices sustainability. to tied specifications. Safe- and meet standards high to way’s partnerships success proprietary varieties noting with best White, the emphasizes want available,” you and consistency lessen- and to miles. local food commits it ing Safeway keeping while field. volume, that that of their grow out exponentially volume local them help with to partnering growers effi- utilization; more crop involve cient Examples efficient,” and Burnham. educated every- says more make much to that we Practices body Best and those important, over more carry becoming are prac- although sustainability tices quality, Their issues paramount. and are normal level those the service just to not related it’s our and scorecard “We vendors, suppliers industry. other the to base, throughout knowledge supplier that vast harvest and its and expertise among the Practices trust, Best brain the on capitalize road. num- the and on trucks costs of shipping ber reduce improve and to packing logistics testing and pilot sus- collaborative field or more the house, varieties, in seed practices on tainable teaming is growers it with whether regular up goals, a its achieve on to partners work basis vendor must with Safeway closely supply so very the Consler, in says is chain,” footprint percent environmental 90 the to of “Eighty lifecycle. sustainable the Teessc rat fapiaini all in application of breadth a such “There’s are requirements the of all not course, Of want “You growers, local supporting In to underway are efforts major produce, In —S TEVE B URNHAM Fast and Fresh!

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Reader Service # 18 Packaging Alternatives Certain sustainability practices go right to the bottom line, and just make excellent business sense. From a packaging perspective, it’s definitely an opportunity for everybody, whether you’re a retailer or supplier, according to Burnham. “I think everyone needs to ask, what reductions and efficiencies can we make? It’s not an official goal, but internally, we’re trying to reduce packaging by about 20 percent right now. Our responsibility, for Geoff and me, is both in regards to the marketing and the procurement, as well as facilitating the retail execution,” he says. “We work with [other retail groups within Safeway] to solicit ideas and feedback, which we, in turn, communicate back down to our procurement group, which works with our suppliers. Maybe it’s an issue with over-packaging or it’s not friendly to labor or con- try, and especially from a retailer’s standpoint, for harmonization between all the different ducive to merchandising, but if we reduce helping people get there; being a conduit to audits that are going on in the industry…We this and come up with alternatives, we can sharing of information that can help everyone all have our different expectations. Also, each fix the problem.” learn from these pieces,” says White. company wants to protect itself and to make In addition, the procurement team is work- With so many standards floating around, sure to have all its “Ts” crossed and “Is” dot- ing with shippers on the use of non-wax and multiple audits, suppliers feel squeezed. ted, and it’s difficult to set standards that fit boxes, increasing carton usage for recyclabil- “It’s the age-old problem…the retailer wants every company. I think it has to be an industry ity, materials for the stores as well as the ware- to have its own standards,” White sympa- solution and not just a retailer taking the hard houses. And then they’re looking at cartons thizes. “I know that there’s a push right now line. I think there’s a balance there for sure.” made with the non-bleach cardboard as well.

Reader Service # 14

26 PRODUCE BUSINESS • MAY 2010 The process is less dictatorial and more collaborative, according to White. “Though “Everyone wants to use sustainability as we’re very supportive and drive it, you get a point of differentiation or a marketing tool. more from the supplier’s side on coming up with ideas than us coming up with the whole If it’s the right thing for the environment, we thing,” he continues. “Everyone wants to use have to figure out a way to make it bigger sustainability as a point of differentiation or a marketing tool. If it’s the right thing for the and bolder than it is with just one vendor or environment, we have to figure out a way to one label.” make it bigger and bolder than it is with just one vendor or one label,” says White. —GEOFF WHITE “I think sustainability is on the way to becoming the price of admission, and as a with the dichotomy of increased packaging to materials and through associates,” he says. retailer, we have to be cognizant of that,” address food safety and quality issues, versus The concept of locally grown has become Burnham agrees. “If there are increased costs, reduced packaging to eliminate waste and nebulous and distorted. “Local can be a real the end game is a more sustainable package, appease die-hard sustainability shoppers. “It’s rhetorical kind of thing and no one has really and consumers are leaning toward that and the pendulum swing. It goes all the way over defined what local is,” acknowledges White. holding us accountable.” here and then we’ll find a way to get it back “We let our consumers define it for us.” At the In floral, vice president Traci Adams is to where it needs to be,” says Burnham. Safe- same time, “I think there are some ‘have to brainstorming with her suppliers to implement way puts weight on consumer input. haves.’ You can’t call it local if it’s going to innovative sustainability ideas, all part of a flo- drive 400 miles, so there’s that hurdle — how ral program called Zero Waste. “We’re just Committed To Locally Grown far it will travel. But for us, it’s the items that tapping into it, but everything in that depart- The chatter in regard to sustainability, are important to the consumers in the areas ment is set to be recyclable or compostable. packaging and locally grown goods has gotten that they live. It may not be defined as local, Even the display buckets have some sort of a lot louder and a lot more frequent, accord- but as locale. It means carrying Michigan recyclable attribute that we can use, and they ing to Burnham. “We definitely have gotten a blueberries in our Dominick’s stores at the can go to a chipper and get worked back in lot of kudos from the consumers on our local right time. Those shoppers don’t want New and made into new buckets,” says White. efforts. Local isn’t anything new to Safeway, Jersey blueberries or Oregon blueberries if In terms of item-specific packaging in the we’re just doing a better job communicating it they can have Michigan blueberries. That’s produce department, the industry grapples in the in-store environment with point-of-sale important to them. But for our stores in Brent-

MAY 2010 • PRODUCE BUSINESS 27 wood, California, we have the Brentwood New suppliers or suppliers with limited sup- White, “but we’re really committed to it.” corn that’s growing two miles down the road. ply will reach out to Safeway’s procurement “I’ve never had a more complex assign- That vendor just delivers it every day to the team in Phoenix. “We have different people ment because of that,” says Burnham. “And store instead of working it through our sys- associated with or responsible for specific then added to that is the complexity in regards tem,” White explains, noting local vendor crops and products, and we get them hooked to organic, local, conventional, but then the relationships going back 70 years. up with the right people,” he says. “Then quality components, the variety components, The process has to be managed very care- we’ll actually go out and visit them, spend the Mother Nature components and then the fully for two major reasons. The first is just time in their fields, bring our quality control promotional components — it takes an army from the food safety aspects. “We have team and then we’ll utilize limited supply for to stay on top if it!” worked with certain local growers to make selected stores.” It doesn’t always have to be sure they fit the criteria, and we visit them counted as local, says Burnham, noting that Recycling Responsibilities before the season and periodically during the taking care of local farmers is part of Safe- Burnham certainly speaks from experi- season,” says White. way’s sustainability culture. ence. He started with Safeway in the stores 20 “Our quality control team goes out in the White adds, “We stay in the deal as long years ago as an apprentice meat cutter, ulti- field, and we test their products,” adds Burn- as we possibly can to help those growers sell mately becoming the group director in meat, ham. Supplier interest really picked up last through their products.” In many ways, it’s then in a new sustainable effort four years ago, year with the heightened awareness to local. complicated procurement. “It’s not easy,” says launching a separate seafood unit as vice pres-

Safeway’s Unsung Green Heroes

afeway’s vast CSR and sustainabil- spread to other parts of the country,” says get them certified is lengthy and bureau- ity efforts touch everyone Brown. For example, Green Chemistry, cratic, so here we are with bio-diesel and throughout the company, and modeled after European systems that look basically nowhere to put it,” Brown explains. SBest Practices are spread across at chemical composition of products and Getting the bio-diesel fuel wasn’t all that all divisions and operations. the hazards of those chemicals in any prod- easy either, according to Joe Pettus, senior While some areas may seem peripheral to uct, such as those for cleaning, is certainly vice president, fuel and energy. The fuel the produce industry, most have challenges on the near horizon in California,” he says. itself wasn’t consistent, and getting it to directly or indirectly affecting produce ini- “It’s nice to be ahead of the curve in some Safeway’s specifications and quality was tiatives. In terms of the produce industry, of these things. We certainly are plugged in very difficult. Pettus admits that Safeway Safeway’s team is bustling with unsung and get advance notice of impending rules.” had to back off on the use of bio-diesel green heroes. Making something more safe or reduc- trucks because the bio-diesel industry is still Jeff Brown, CIH, Director Environmental ing water is certainly a valued sustainabil- not cohesive enough yet to supply such a Affairs, explains the sheer scale of sustain- ity measure at Safeway. At the same time, big customer. ability programs underway: solutions to problems are not always so Safeway is a big grocery company, but • The total amount of recycled card- clear-cut. The EPA started to phase out also a big energy company; Energy is Safe- board, including all Safeway stores, supply refrigerants that were causing damage to way’s second largest cash expense, other plants and distribution centers, which col- the ozone layer, so Safeway phased those than personnel, explains Pettus. “We are lects it from the stores, amounted to out at a fairly rapid rate in many areas. one of, if not the largest commercial con- 300,000 tons last year. That includes dry Available replacements were HFCs [refrig- sumer of electricity in the state of Califor- and non-wax cardboard received, basically erant comprised of Hydrogen, Fluorine nia, so we have a huge energy load; we air- from the packaging of products, the ship- and Carbon], which seemed a good choice condition 24/7 and what we don’t air con- ping packaging, cartons, etc. at the time, Brown explains. “Now you dition, we refrigerate, and what we don’t • Waxed cardboard is used to collect have to also consider that HFCs may have refrigerate, we freeze, and if we’re going to compostable produce, floral and deli items been slightly less efficient so you have to freeze it, we heat it,” he exclaims. that aren’t sold at stores. The total amount use more electricity to do the same refrig- “We went out and bought our own nat- of material collected and composted last eration; in that sense it increases the ural gas, went to the power plants and said, year was 110,000 tons. amount of global warming. In the new just turn it into electricity; I’ll buy the gas, • The plastics recycling number hit global warming regimes, we’re going to you turn it into electricity — we’ve become around 13,300 tons. have to deal with that,” Brown continues. our own utility, so it saves us a lot of • Overall, Safeway recycled nearly Bio-diesel conversion for all the trucks money,” he says, describing somewhat of a 520,000 tons of materials. was another expensive venture. “We went coup, extending the strategy to Canada and Safeway’s progressive posturing puts the out ahead of the curve and converted to any state in the United States that allows it. retailer ahead of the curve, which could be bio-diesel,” says Brown. “There’s nothing “We’re basically either acquiring our own critical, especially in California as new regu- inherently wrong with bio-diesel, but the energy directly, or manufacturing it, or lations and stricter standards come down underground tanks to hold it were not certi- both.” One big advantage, “If I make too the pike. “It’s starting in California, but it will fied to hold it. The process in California to much electricity, I can sell it to someone

28 PRODUCE BUSINESS • MAY 2010 ident and then as vice president of market- same issues. We all love Mother Nature, good would call it a strong partnership where pro- ing/planning, before joining the produce team. and bad. And the industry is very solutions- duce managers understand what we’re trying “One of the things we do as an organization is oriented. We have to be,” he says. to accomplish and are able to execute that,” cross-pollination and lateral moves to get a White gives credit to Safeway’s savvy buy- says White. broader aspect of the business, which is really ing team, which understands the strategy, and “We certainly have shared our perfor- exciting and one of the big successes of Safe- is very in-tune to local markets. Feedback mance objectives together,” Burnham contin- way, says Burnham. “I think it really keeps it from each of the local divisions helps guide ues. “We’re moving forward with the sustain- exciting for the individual and adds new corporate as well because they’re in the mar- ability objectives for the corporate team, as blood and perspective for the business.” ket every day. “They won’t let us miss a beat,” well as rolling those out further throughout the White provides his take: “Steve and I are adds Burnham. organization. These are part of our perfor- both grocers and so that’s where our heads “Although Safeway buying is centralized, mance objectives and what we’re targeting and our hearts are, but deep inside our heart it has division geographical management. and developing; then creating a trickle-down and our soul is produce. Steve’s got two years “We run the marketing and merchandising effect so all employees embrace sustainability of produce, and I’ve got 28 years, but once expectations from here,” White says. “We’re a asapriority.” you’re in, it’s in your blood. It’s a very tight- tight knit group from both corporate and retail And in the spirit of a true sustainable life- knit group. We all compete with each other, so they know what the strategies are, what our cycle, new employee ideas will trickle back but we all support each other. We all have the guidance is, right down to our weekly ads. I up again. pb

JEFF BROWN, JOE PETTUS, MIKE VINCENT, DIRECTOR, DIRECTOR ENVIRONMENTAL AFFAIRS SENIOR VICE PRESIDENT, FUEL & ENERGY SUPPLY CHAIN SUSTAINABILITY, SUPPLY CHAIN & STRATEGIC SOURCING else, but basically, it allows me to move it of the end-of-life story, so we used to call it research in the field. from the plant to the stores and to buy elec- cradle-to-grave. Now it’s cradle-to-cradle, so Safeway is also a member of Stanford’s tricity in some states and move it to others,” we’re trying to close the loop,” he says. “Our socially and environmentally responsible he says, describing the process, which it has perishables group is dynamic and we’re get- supply chain forum (SER), “which is more been doing well over four years now. “So it ting some traction with our local sourcing about practices within the supply chain saves money and we’ve invested some of initiative,” Vincent adds. He also speaks and optimizing our logistics to minimize that money back into our green activities.” highly of Traci Adams, vice president of flo- our footprint on the environment,” Safeway also has about 20 acres of solar ral, who really bit onto a goal of zero waste says Vincent. panels in California. “Now, a lot of people in that department. The economics of business often leads have solar panels, but for Safeway, the elec- “The first time she brought up the con- to the most sustainable application, accord- trons that are produced on the roof go into cept of zero waste, I went, ‘Uh, I’m an engi- ing to Vincent. Everyone has sustainability our store, which gives us that green ability,” neer. I don’t know if that’s physically possi- objectives. Managers in our areas present at says Pettus. Most others who implement ble or feasible’ and I got very nervous.” Traci least four sustainability projects annually, solar sell it back to the power company, remained undeterred, describing her vision and buyers and analysts at least two, he he notes. as a lofty goal to work toward. “We set that says, adding, “We’re embedding sustainabil- Globally, Safeway is organized around as a shining light,” and a spirited team was ity into their goals this year.” But the other sustainability in its CSR initiatives and then formed to make it happen. piece can’t be underplayed; to be sustain- there are four pillars within that. Team Inundated by suppliers with various able, it needs to be a sustainable business Planet and Team Product are two of those claims of green packaging and environmen- practice. In other words, the economics pillars dear to Mike Vincent, director, sup- tal sustainability, Vincent helped sort have to support it. “What we do is build a ply chain sustainability, supply chain and through the claims. “I’m a realist...so I kind business case — what the objective is, what strategic sourcing. “My core expertise is of have one eye closed on all these claims the consumer impact is, what the carbon packaging, so some people might think I’m and you have to provide it to me,” he says, benefits are, and what the economic pay- part of the problem, but I like to think I’m conducting his own intensive product test- backs are. If it costs more, consumers are part of the solution,” he says, committed to ing, for example, to find containers with gong to need to be willing to pay more or the traditional mindset of the 3 Rs — natural composting properties, and working it’s going to have to offset some kind of reduce, reuse, recycle. closely with universities, including the Cal processing cost or freight efficiencies or “We were always taught to be cognizant Poly consortium, doing groundbreaking something that it pays out for itself.” pb

MAY 2010 • PRODUCE BUSINESS 29 SAFEWAY PROTOTYPE LEEDS THE WAY Santa Cruz store is first of many LEED stores in Safeway’s green vision.

hen Safeway decided to design its first Leadership in sand gallons a day going into the sewer. “We pulled off 700 gallons a Energy and Environmental Design (LEED)-certified store day just from the sale area, and we only use 500 gallons for irrigation.” in Santa Cruz, CA, its goals were serious and far-reach- Safeway water is generated inside the store from the retailer’s refrig- ing, according to Jim Gibbon, architectural coordinator, eration equipment and recycled for landscaping. In the next store, W corporate construction and design at Safeway, and “we’re going to pump part of instrumental in its development. that water into the bathrooms. The environmentally friendly unit, double the size of its 30,000- It’s a tremendous amount of square-foot replacement, is an evolving prototype, a test laboratory of water to waste,” he says, sorts, where innovative sustainability concepts are strategized, imple- adding that the water is clean mented and tweaked. This year alone, Safeway is busily engineering 15 because it is simply generated more LEED-certified stores. Ultimately, Gibbon says he and his team by the process of freezing and strive to create a working template, which can be easily duplicated or cooling moisture from the adapted for eventual rollout to store formats throughout the retailer’s humid Santa Cruz air. broad chain network. Gibbon enthusiastically begins our tour by highlighting an innova- Just For the Ride tive water recycling scheme that targets arguably one of the most Healthy living and Santa important and under-addressed issues facing the industry: water utiliza- Cruz weather encourage good tion to avert shortages. “We’ve been in business for a hundred years use of the 52-bike racks posi- and nobody knew how much water was being dumped into the sewer,” tioned in four different loca- says Gibbon. Safeway conducted an analysis, which revealed a thou- tions outside the store. And in

30 PRODUCE BUSINESS • MAY 2010 “We’re committed to sustainability integration in the way we build buildings. LEED and USGBC give us the mechanisms to measure common sense greeness. Eventually, we’re just going to be green all the time.” —JIM GIBBON

LEED-certified style, showers are available if employees want to refresh In the open area of the produce department, wooden tables support themselves after an energized ride to work. well merchandised displays of fruits and vegetables, subtly highlighted For the future, Gibbon is experimenting with the concept of fuel above by energy-efficient lights. “We decided we didn’t need a flood of efficient vehicle parking for employees...essentially a bank of recharg- light; what we needed was light ing stations in the employee parking lot. “It’s more apt for employee that was focused,” says Gibbon. use than for customers because customers don’t stay around long Light level in the center of a enough to really take advantage of it,” he says, noting, “The cost of typical store may be one-foot the energy for recharging a car for five hours is something like fifty candle per square foot. Here it cents; it’s really cheap.” is half the light load, but you A third party would control the energy box and charge the people still see the product because the directly for using it, in Gibbon’s scenario. When the car was fully light is concentrated on the charged, the system would be set up to call the employee cell phone product and creates a more number to tell him to move his car. “When one of our upper managers soothing setting. says, ‘Now it’s time to experiment,’ this is the store designed to do it in.” Store windows are thought- Safeway’s attention to its employees’ well being is reciprocated. fully placed to take advantage “Our managers, sub-managers and all the people who work in our of natural lighting. “We’re mea- departments are so proud to be part of our first green store,” says Gib- suring the energy use of the bon. “Look at the perfection,” he points to a cornucopia of beautifully lights. We may start putting in appointed fresh produce displays that highlight local and organically some LED lights to see the Jim Gibbon, architectural coordinator, grown fruits and vegetables. incremental reduction,” Gibbon corporate construction and design

MAY 2010 • PRODUCE BUSINESS 31 32 Reader Service # 85 amabec itn fisLfsyestores. Lifestyle its of fitting ambience creates warm which a flooring, (VCT) tile composition walking shoppers we have explains. what he is blinded,” and do around whiter; to they be want but to don’t energy, tendency the a LED of have to one-fourth out uses lights lights the “Changing continues. RDC UIES•MY2010 MAY • BUSINESS PRODUCE ne h rdc tnsi ihvinyl high is stands produce the Under oktela satsiggon o using for ground testing a store as Cruz lead to Santa the effort the took an chemicals, In toxic them. alleviate cleaning to solution green your take will you slip-resistant.” it it’s it, and or off, scratch flooring shins cannot this you lift be years; cannot “will 20 flooring for the here Gibbon, to According hntefor e it,teei vna even is there dirty, get floors the When nryManagement Energy hog etn a,acrigt Gibbon. to according certified lab, testing and a environ- biodegradable through the all hurt They’re don’t ment. that supplies cleaning n td on n nacrt nlssof analysis accurate An experimentation on. continuous going of study lot and a is there eidtesee ftenwLE store, LEED new the of scenes the Behind ns n nteed fetLEED-certified affect end, explains. Gibbon sav- the scoring, energy in overall and on ings, cre- assumptions can false true phenomenon ate its This knew efficiency. nobody energy and had chal- equipment department be deli slicing the can example, store For the lenging. throughout use energy aea’ nrymngmn system management energy Safeway’s ihs fiinyadt tv f n prob- any off stave to their at and working efficiency and balance highest sure in make a are to addition, systems periodically all in in and comes ours, party third of are partners “These keen goals. very environmental meeting operations are ensure to and follow-through installation, dedicated during of and retesting before and equipment testing extensive involves culyprhsn h lo oe from boxes Bloom the are purchasing “We actually technology. that ground-breaking cells use Bloom fuel alternative with future, installations, experimenting the energy is for store panels, fuel the solar by provided stringent. and frequent more inspec- even store are LEED tions noting Gibbon, says lems,” hl uho h tr ilhv energy have will store the of much While A 00•POUEBUSINESS PRODUCE • 2010 MAY 33 Reader Service # 49 the company [Sunnyvale, CA-based Bloom Energy], but it handles the maintenance and upgrades for ten years,” he says. That’s the reason why you do prototypes, he explains, “to determine the cost, the maintenance and those intangibles...The payback on these systems is something like four or five years, as long as you can use the power and don’t have to sell it back,” Gibbon explains. “What we did is create a sweet spot of how much we’re Reader Service # 12 producing and how much we’re able to produce from this site itself.” Will there ever be a windmill in the store parking lot? “We invest primarily in wind farms, and for individual stores, the solar panels are better,” he notes. LEED-certified efforts may not always be so obvious to Safeway shoppers, but Gibbon wants to change that with an interactive com- puter kiosk station. A touch screen monitor would describe the Santa Cruz store evolution, but also tell a much bigger story of Safe- “We’re selecting a store in each division to way’s corporate social responsibility. “As it be the first LEED-certified store in that division, goes, this will be the prototype and then we’ll and we use it to train our internal construction roll it out to all the other LEED stores, and and design and operational people.” then we’ll roll it out to all our stores,” he says. Safeway is in this for the long run. Some “It’s going to talk about public transporta- companies do a big advertising kick and then tion, green initiatives and social responsibility walk away from it and go back to doing what and volunteerism. But it also will link you to they were doing, he says. “We’re committed Web sites where you can get other information, to sustainability integration in the way we or it will tell you what Web site to go to, and build buildings. LEED and USGBC [U.S. shoppers will turn to their iPads to instantly Green Building Council, a non-profit com- learn more,” he envisions. pany dedicated to sustainable building design and construction], give us the mechanisms to More Of A Good Thing measure common sense greenness. Eventually, “We are basically taking the bull by the we’re just going to be green all the time.” pb horns...We have modified specifications so that all of the green elements and all of the LEED- [Editor’s note: Special thanks to Oscar Katov at certifiable requirements are in the specifica- OK Communications, Hoover, AL, and Teena tions. We have updated our prototype and our Massingill, Safeway’s corporate public affairs documents so that the LEED process can be director, for their assistance in this year’s Retail

Reader Service # 15 duplicated in other stores,” he explains. Sustainability Award.]

34 PRODUCE BUSINESS • MAY 2010 Reader Service # 8 SPECIAL REPORT

Wal-Mart Pricing Report Round XX Philadelphia’s Competitive Landscape

In Philadelphia, Wegmans gives Wal-Mart a true run for its money, while Giant and Genuardi's apply pressure with their Ahold and Safeway loyalty card programs.

s the 20th iteration of the PRODUCE BUSINESS Wal- With only three stores, Wal-Mart is not a major factor in the Mart Pricing Report rolls into the City of Brother- market, so competitors can elect to ignore it or only choose to ly Love — Philadelphia — we find the retailers respond at those stores in direct proximity to a Wal-Mart super- there engaged in anything but a love fest. center. We chose to visit an Acme in Horsham, PA, a Genuardi’s in In fact, the bitter competitive environment in Warrington, PA, a Giant in Willow Grove, PA, a Superfresh in Wil- PhillyA offers an indication of what might be in store for the indus- low Grove, PA, and a Wegmans in Warrington, PA. All the stores try, as Wal-Mart moves it supercenter concept into competition were within 10 minutes’ drive of the Wal-Mart Supercenter. with well-established urban concepts. In the Philly region, Wal- This chapter of the study brings under scrutiny several new Mart has 20 stores, but only three supercenters -- in Deptford, NJ, names. Although we have often featured Safeway banners in Willow Grove, PA, and Turnersville, NJ. We did our test at the Wil- the study, this is the first appearance of Genuardi’s, Safeway’s low Grove store. acquisition of December, 2000. A&P concepts also have figured

36 PRODUCE BUSINESS • MAY 2010 SAVE THE DATE!

NOVEMBER 9-11, 2010 NEW YORK CITY

CONTACT INFORMATION:

FOR REGISTRATION FOR BOOTH SALES EASTERN PRODUCE COUNCIL PRODUCE BUSINESS AND SPONSORSHIPS Fran Gruskin John McAleavey Ken Whitacre Ph: 212-426-2218 Eric Nieman, Ellen Rosenthal, Ph: 973-564-6295 Ph: 561-994-1118, ext 101 Bill Martin, Sandy Lee, E-mail: Shaunn Alderman E-mail: E-mail: [email protected] [email protected] [email protected] Ph: 212-426-2218 E-mail: [email protected] Wal-Mart Supercenter vs 5 Chains Price Comparison — Philadelphia, PA Prices Available To The General Public Produce Item How Wal-Mart Acme % Over Genuardi’s % Over Giant % Over Super- Sold Supercenter Wal-Mart Wal-Mart Wal-Mart fresh Apples - Granny Smith Lb 1.27 1.69 33.07% 1.69 33.07% 1.99 56.69% 1.99 Apples - Red Delicious Lb 1.27 1.49 17.32% 1.99 56.69% 1.99 56.69% 1.69 Apples — Fuji Lb 1.49 1.69 13.42% 1.69 13.42% 2.49 67.11% 1.99 Artichokes Each 1.78 2.50 40.45% 4.99 180.34% 1.99 11.80% 1.58 Asparagus Lb 2.00 1.99 -0.50% 3.29 64.50% 3.99 99.50% 3.99 Avocados Each 1.00 1.00 0.00% 1.50 50.00% 1.79 79.00% 2.00 Bananas - Yellow Lb 0.39 0.69 76.92% 0.49 25.64% 0.59 51.28% 0.69 Beans - Green Lb 2.48 1.99 -19.76% 2.99 20.56% 2.99 20.56% 2.99 Blackberries Package: 12oz 3.28 3.98 21.34% 6.98 112.80% 7.98 143.29% 5.98 Blueberries Package: 6oz 3.00 5.44 81.33% 3.29 9.67% 3.99 33.00% 3.99 Broccoli Crowns Lb 1.58 2.19 38.61% 1.69 6.96% 1.99 25.95% 1.99 Cabbage - Green Lb 0.64 0.79 23.44% 0.79 23.44% 0.89 39.06% 0.79 Cantaloupe - Whole Each 1.39 2.50 79.86% 3.49 151.08% 3.99 187.05% 1.98 Carrots - Regular 1# Bag Package 1.12 1.49 33.04% 0.99 -11.61% 0.99 -11.61% 1.49 Coleslaw - 1# Bag 14oz Bag 1.48 1.31 -11.49% 1.99 34.46% 1.99 34.46% 2.29 Cucumbers - English Each 1.98 1.50 -24.24% 2.49 25.76% 2.49 25.76% 2.50 Cucumbers - Regular Each 0.58 0.99 70.69% 0.99 70.69% 0.99 70.69% 0.99 Dips - Marzetti 16.5oz 3.28 3.99 21.65% 3.49 6.40% 3.99 21.65% 3.99 Dressing - Other Bottle 12.5oz 3.34 3.99 19.46% 4.49 34.43% 3.59 7.49% 3.99 Garlic Lb 3.58 3.99 11.45% 3.49 -2.51% 3.99 11.45% 3.99 Grapefruit - Red Each 0.68 1.00 47.06% 1.29 89.71% 1.50 120.59% 1.00 Grapes - Green Seedless Lb 1.50 1.99 32.67% 2.99 99.33% 2.99 99.33% 2.99 Grapes - Red Seedless Lb 1.50 1.50 0.00% 2.99 99.33% 2.99 99.33% 2.99 Jar Fruit - Del Monte Jar: 20oz 2.98 4.48 50.34% 3.99 33.89% 3.69 23.83% 3.99 Kale 2 Lb 3.86 2.98 -22.80% 1.29 -66.58% 2.98 -22.80% 2.98 Kiwi Each 0.33 0.50 51.52% 0.69 109.09% 0.50 51.52% 0.50 Lemons - Bulk Each 0.44 0.66 50.00% 0.79 79.55% 0.89 102.27% 0.70 Lettuce - Iceberg Bulk Each 1.28 1.99 55.47% 1.49 16.41% 1.69 32.03% 0.99 Limes - Bulk Each 0.52 0.66 26.92% 0.50 -3.85% 0.79 51.92% 0.50 Mangos Each 1.25 1.00 -20.00% 1.99 59.20% 1.50 20.00% 1.25 Mushrooms - White Bulk Lb 2.98 5.98 100.67% 4.78 60.40% 3.49 17.11% 4.03 Mushrooms - White Sliced Pkg: 8oz 1.88 2.49 32.45% 2.39 27.13% 2.49 32.45% 2.50 Onions - Red Lb 1.98 1.99 0.51% 1.99 0.51% 1.99 0.51% 1.99 Onions - Yellow Lb 1.78 1.28 -28.09% 1.29 -27.53% 1.29 -27.53% 1.49 Onions - Yellow Bag Bag: 3lb 3.88 3.49 -10.05% 2.29 -40.98% 3.49 -10.05% 3.74 Onions — Sweet Lb 1.78 1.99 11.80% 1.89 6.18% 1.69 -5.06% 2.49 Oranges — Navel Bag Bag: 8lb 6.98 7.98 14.33% 7.99 14.47% 5.99 -14.18% 4.99 Pears - Bartlett Lb 1.47 1.89 28.57% 1.59 8.16% 1.79 21.77% 1.99 Pineapple Each 3.48 3.99 14.66% 4.29 23.28% 3.49 0.29% 3.99 Pistachios - Bag Bag 10.5oz 3.88 4.48 15.46% 5.24 35.05% 3.93 1.29% 3.99 Potatoes - Red Bulk Lb 0.98 0.99 1.02% 0.99 1.02% 1.29 31.63% 0.99 Potatoes - Russet 5# Bag Bag 2.97 2.99 0.67% 2.99 0.67% 3.49 17.51% 2.99 Salad - Caesar Bag: 9.9oz 3.88 4.93 27.06% 4.29 10.57% 3.69 -4.90% 3.99 Salad - Garden Bag: 6oz 2.98 0.75 -74.83% 0.75 -74.83% 3.69 23.83% 1.15 Salad - Spring Bag: 5oz 2.50 3.49 39.60% 3.49 39.60% 3.69 47.60% 3.69 Spinach - Bulk Bag: 10oz 1.98 2.51 26.77% 2.49 25.76% 1.99 0.51% 2.49 Squash - Zucchini Lb 2.48 1.78 -28.23% 1.99 -19.76% 1.99 -19.76% 1.99 Strawberries - 1# Pkg Package 2.00 3.99 99.50% 3.99 99.50% 4.49 124.50% 2.99 Sweet Potatoes / Yams Lb 0.93 1.00 7.53% 0.89 -4.30% 0.99 6.45% 1.49 Tomatoes - Grape Bag: 10oz 2.98 2.46 -17.45% 2.46 -17.45% 2.66 -10.74% 3.33 Tomatoes - On the Vine Lb 1.98 3.49 76.26% 2.99 51.01% 3.99 101.52% 3.99 Tomatoes - Plum/Roma Lb 2.48 2.49 0.40% 1.99 -19.76% 2.49 0.40% 2.99 MARKET BASKET PRICE 109.50 128.39 17.25% 133.86 22.25% 138.30 26.30% 132.06 Note: Prices in red represent adjusted prices to match Wal-Mart’s unit size

in the study before — indeed when it limited assortment of produce items the & Shop banner, in our very first iteration of was operating in Detroit, its Food Basic concept carried. This is, however, the this report back in 2002, but has not concept underpriced Wal-Mart more dra- first appearance of A&P’s Superfresh appeared since. It now reappears under its matically than any concept we’ve ever banner. Giant banner. And although we’ve featured seen, by a full 17 percent, albeit on the Ahold was featured, with its Super Stop other Supervalu banners, this is Acme’s

38 PRODUCE BUSINESS • MAY 2010 first appearance in our study. assortment, with its marketplace-like Perhaps most interesting, this is the entries rich with fresh and prepared foods, first time that prices at Wegmans have including bountiful fresh produce depart- been surveyed for this study. ments, one is tempted to think of this as % Over Wegmans % Over Indeed, Wegmans’ showing in the study some kind of epicurean, upscale store. Yet, Wal-Mart Wal-Mart amply illustrates why it is such a powerful on prices, Wegmans gives even Wal-Mart a 56.69% 1.99 56.69% 33.07% 1.99 56.69% chain. Well respected for quality and run for its money, coming out at only 5.07 33.56% 1.99 33.56% -11.24% 2.50 40.45% 99.50% 2.99 49.50% How They Stack Up Against Wal-Mart Supercenter 100.00% 1.67 67.00% 76.92% 0.49 25.64% Region/ % over % over % over 20.56% 1.29 -47.98% Date Surveyed Store Wal-Mart Store Wal-Mart Store Wal-Mart 82.32% 5.98 82.32% 33.00% 3.99 33.00% 25.95% 1.49 -5.70% Connecticut-5/02 Super Stop & Shop 23% Shaws 34% Big Y 36% 23.44% 0.89 39.06% Salt Lake City-10/02 Harmon’s 2% Smith’s 6% Albertson’s 12% 42.45% 2.50 79.86% 33.04% 0.99 -11.61% South Florida-2/03 Super Target 22% Publix 31% Winn-Dixie 52% 54.73% 1.31 -11.49% 26.26% 2.50 26.26% Dallas, Texas-10/03 Albertsons 23% Brookshires 7% Kroger 19% 70.69% 0.99 70.69% Neighborhood Market –1.2% Tom Thumb 27% 21.65% 3.49 6.40% 19.46% 3.59 7.49% Portland, OR-3/04 Albertsons 30% Fred Meyer 22% Haggen 27% 11.45% 3.69 3.07% Safeway 37% 47.06% 1.25 83.82% 99.33% 1.99 32.67% Phoenix, AZ-8/04 Albertsons 22% Bashas 25% Fry’s 15% 99.33% 1.99 32.67% Safeway 17% 33.89% 3.59 20.47% -22.80% 2.29 -40.67% Palm Springs-10/04 Albertsons 19% Jensen’s 60% Ralphs 16% 51.52% 0.50 51.52% Vons 20% 59.09% 0.79 79.55% -22.66% 1.49 16.41% Detroit, MI-1/05 A&P Food Basic –17% Farmer Jack 24% Kroger 28% -3.85% 0.79 51.92% Meijer 3% 0.00% 1.34 7.20% 35.23% 3.29 10.40% St. Louis, MO-5/05 Dierbergs 22% Schnucks 14% Aldi –25.03% 32.98% 2.00 6.38% Save-a-Lot –12.76% 0.51% 1.69 -14.65% Houston, TX-9/05 HEB 15% Kroger 30% Fiesta Mart –0.3% -16.29% 0.99 -44.38% -3.61% 2.54 -34.54% Atlanta, GA-11/05 Harry’s 18% Ingles 16% Kroger 25% 39.89% 1.99 11.80% Publix 13% Target 3% -28.51% 7.98 14.33% 35.37% 1.69 14.97% Denver, CO-5/06 Albertsons 16% King Sooper 21% Safeway 25% 14.66% 3.99 14.66% 2.84% 3.93 1.29% Portland, OR-10/06 Albertsons 32% Fred Meyer 21% QFC 54% 1.02% 0.99 1.02% Safeway 30% 0.67% 1.99 -33.00% 2.84% 2.99 -22.94% Toronto Canada-7/07 A&P 35% Brunos 28% Loblaws 13% -61.41% 0.50 -83.22% Sobeys 45% 47.60% 2.50 0.00% 25.76% 2.00 1.01% Kansas City, KS-10/07 Dillons 20% Hen House 15% Hy Vee 18% -19.76% 1.69 -31.85% Price Chopper 13% 49.50% 2.50 25.00% 60.22% 0.99 6.45% Los Angeles-4/08 Fresh & Easy 15% Stater Bros 8% Ralphs 25% 11.74% 1.99 -33.22% Vons 14% 101.52% 2.49 25.76% 20.56% 1.99 -19.76% Orlando, FL-10/08 Publix 32% Super Target 22% Whole Foods 38% Winn-Dixie 28% 20.60% 115.05 5.07% Phoenix, AZ 4/09 Wal-Mart Marketside 23% Neighborhood Market 7% Bashas 30% Fresh & Easy 32% Fry’s 27% Safeway 37%

Raleigh, NC 9/09 Food Lion 24% Fresh Market 31% Harris Teeter 35% Kroger 21% Super Target 11%

Philadelphia 5/10 Acme 17% Genuardi’s 22% Giant 26% Superfresh 21% Wegmans 5%

MAY 2010 • PRODUCE BUSINESS 39 Wal-Mart Supercenter vs 5 Chains Price Comparison — Philadelphia, PA Prices Available To Loyalty Card Holders* Produce Item How Wal-Mart Acme % Over Genuardi’s % Over Giant % Over Sold Supercenter Wal-Mart Wal-Mart Wal-Mart Produce Item How Priced Reg Price Reg Price % Over Wal-Mart Reg Price % Over Wal-Mart Reg Price % Over Wal-Mart Apples - Fuji Lb 1.49 1.69 13.42% 1.69 13.42% 1.49 0.00% Artichokes Each 1.78 2.50 40.45% 2.50 40.45% 1.99 11.80% Asparagus Lb 2.00 1.99 -0.50% 3.29 64.50% 2.99 49.50% Avocados Each 1.00 1.00 0.00% 0.99 -1.00% 1.25 25.00% Beans - Green Lb 2.48 1.99 -19.76% 2.99 20.56% 1.69 -31.85% Blackberries 12oz Package 3.28 3.98 21.34% 6.00 82.93% 2.50 -23.78% Blueberries 6oz Package 3.00 5.44 81.33% 3.29 9.67% 2.99 -0.33% Broccoli Crowns Lb 1.58 2.19 38.61% 1.69 6.96% 1.69 6.96% Cantaloupe - Whole Each 1.39 2.50 79.86% 3.49 151.08% 2.50 79.86% Dips - Marzetti 16.5oz 3.28 3.00 -8.54% 3.49 6.40% 3.79 15.55% Grapefruit - Red Each 0.68 1.00 47.06% 1.29 89.71% 1.00 47.06% Grapes - Green Seedless Lb 1.50 1.99 32.67% 2.99 99.33% 1.99 32.67% Grapes - Red Seedless Lb 1.50 1.50 0.00% 1.99 32.67% 1.99 32.67% Jar Fruit - Del Monte 20oz Jar 2.98 4.48 50.34% 3.00 0.67% 3.69 23.83% Kiwi Each 0.33 0.50 51.52% 0.69 109.09% 0.33 0.00% Lemons - Bulk Each 0.44 0.66 50.00% 0.79 79.55% 0.66 50.00% Lettuce - Iceberg Bulk Each 1.28 1.99 55.47% 1.49 16.41% 0.99 -22.66% Limes - Bulk Each 0.52 0.66 26.92% 0.50 -3.85% 0.66 26.92% Mangos Each 1.25 1.00 -20.00% 0.99 -20.80% 1.25 0.00% Oranges - Navel Bag Bag 8lbs 6.98 7.98 14.33% 5.99 -14.18% 5.99 -14.18% Pears - Bartlett Lb 1.47 1.89 28.57% 1.59 8.16% 0.69 -53.06% Pistachios - Bag Bag 10.5oz 3.88 4.48 15.46% 5.24 35.05% 3.27 -15.72% Salad - Caesar Bag Wht: 9.9oz 3.88 4.93 27.06% 4.29 10.57% 2.50 -35.57% Salad - Garden Bag Wht: 6oz 2.98 0.75 -74.83% 0.75 -74.83% 2.50 -16.11% Salad - Spring Bag Wht: 5oz 2.50 3.49 39.60% 3.49 39.60% 2.50 0.00% Spinach - Bulk 10oz bag 1.98 2.51 26.77% 1.99 0.51% 1.99 0.51% Squash - Zucchini Lb 2.48 1.49 -39.92% 1.49 -39.92% 1.99 -19.76% Strawberries - 1# Pkg Package 2.00 3.99 99.50% 2.49 24.50% 4.49 124.50% Sweet Potatoes / Yams Lb 0.93 1.00 7.53% 0.89 -4.30% 0.89 -4.30% Tomatoes - Grape 10oz bag 2.98 2.46 -17.45% 2.46 -17.45% 3.49 17.11% Tomatoes - On the Vine Lb 1.98 3.49 76.26% 2.99 51.01% 2.99 51.01% MARKET BASKET PRICE 109.50 127.11 16.08 122.39 11.77 116.91 6.77 *Adjusted if all items in original market basket were purchased using Loyalty Cards

percent above Wal-Mart’s prices — a differential small enough to be overcome by On the surface, it seems like the Supervalu banner in other attributes from location to quality to the regime is pretty competitive...However, when we employee attitude — Wegmans has consistently been named to the “Best Places to look at how loyalty card pricing alters the competitive Work” list published annually by Fortune landscape, then one realizes that Supervalu has its magazine. work cut out for it. PRICING APPROACHES We run price comparisons two ways. First, we look at what prices anyone would Mart’s, while Safeway’s Genuardi’s banner Giant. However, when we look at how loy- pay as they walk in the door. This includes found itself at 22.25 percent over Wal-Mart’s alty card pricing alters the competitive advertised prices, but does not include dis- prices and Ahold’s Giant came in a full 26.30 landscape, then one realizes that Super- counts one can get by having a loyalty percent over Wal-Mart. valu has its work cut out for it. card. On the surface, it seems like the Super- Wegmans, Acme and Superfresh offer On this basis, Acme, the local market valu banner in the region is pretty competi- loyalty card programs called Shoppers leader, beats out everyone in the study other tive. Wal-Mart and Wegmans are both Club, SuperCard and Club Card, respec- than Wal-Mart itself and Wegmans, coming much less expensive and offer larger tively, but Wegmans did not use it at all to in with prices 17.25 percent above Wal- stores with a more extensive assortment, offer reduced produce prices on any of the Mart’s. A&P’s Superfresh banner comes in but Acme offers a real price advantage market basket items in this study, and both next with prices 20.60 percent above Wal- over the efforts of A&P, Genuardi’s and Acme and Superfresh barely used it for

40 PRODUCE BUSINESS • MAY 2010 Superfresh % Over Wegmans % Over Wal-Mart Wal-Mart Reg Price % Over Wal-Mart Reg Price % Over Wal-Mart 1.99 33.56% 1.99 33.56% 1.58 -11.24% 2.50 40.45% 3.99 99.50% 2.99 49.50% 2.00 100.00% 1.67 67.00% 2.99 20.56% 1.29 -47.98% 5.98 82.32% 5.98 82.32% 3.99 33.00% 3.99 33.00% 1.99 25.95% 1.49 -5.70% 1.25 -10.07% 2.50 79.86% 3.99 21.65% 3.49 6.40% 1.00 47.06% 1.25 83.82% 2.99 99.33% 1.99 32.67% 2.99 99.33% 1.99 32.67% 3.99 33.89% 3.59 20.47% 0.50 51.52% 0.50 51.52% 0.70 59.09% 0.79 79.55% 0.69 -46.09% 1.49 16.41% 0.50 -3.85% 0.79 51.92% 1.25 0.00% 1.34 7.20% 4.99 -28.51% 7.98 14.33% 1.99 35.37% 1.69 14.97% 3.99 2.84% 3.93 1.29% 3.99 2.84% 2.99 -22.94% 1.15 -61.41% 0.50 -83.22% 2.99 19.60% 2.50 0.00% STORES SURVEYED 2.49 25.76% 2.00 1.01% 1.99 -19.76% 1.69 -31.85% Wal-Mart 2.99 49.50% 2.50 25.00% 2101 Blair Mill Rd. Willow Grove, PA 19090 1.49 60.22% 0.99 6.45% 3.33 11.74% 1.99 -33.22% Giant 3.99 101.52% 2.49 25.76% 315 York Rd. 130.33 19.02 115.05 5.07 Willow Grove, PA 19090 Superfresh 3070 Welsh Rd. Willow Grove, PA 19090 Genuardi's 389 Easton Rd. The fact that loyalty cards bring both Ahold’s Giant Warrington, PA 18976 Wegmans and Wegmans within shooting distance of Wal-Mart 1405 Main St. — with Safeway’s Genuardi’s not far behind — is a Warrington, PA 18976 Acme situation we have not typically seen. 200 Blair Mill Rd. Horsham, PA 19044

that purpose. vides some insight into the challenges that ty card discounts are included, with its In contrast, both Genuardi’s and Giant Supervalu faces with its acquisition of most prices being 11.77 percent over Wal-Mart’s. extensively used their loyalty programs, of Albertsons. And Giant suddenly moves into competi- called Club Card and BONUSCARD, Although Acme becomes slightly more tive pricing range of Wegmans and Wal- respectively, to provide their members competitive with Wal-Mart, with its prices Mart, with its prices coming in at only 6.77 with value in fresh produce and, in so being 16.08 percent over Wal-Mart’s percent above Wal-Mart’s prices. doing, dramatically alter the competitive prices, and Superfresh also shaves a bit on This dramatically changes the competi- landscape. its numbers by coming out at 19.02 per- tive position of both Acme and Superfresh. In fact, the second way we look at cent over Wal-Mart when loyalty card dis- Whereas based on “walk-in” prices, these prices, which is to assume a customer has counts are included, Genuardi’s becomes two chains are the value proposition in the every loyalty card program out there, pro- dramatically more competitive when loyal- market — Wal-Mart and Wegmans aside

MAY 2010 • PRODUCE BUSINESS 41 — when loyalty card prices are considered, Acme and Superfresh become the higher priced supermarkets in town, and Safe- way’s and Ahold’s operations offer the better prices, at least as far as conventional supermarkets go. The fact that loyalty cards bring Ahold’s Giant within shooting distance of Wal-Mart — with WEgmans already there and Safe- way's Genuardi’s not far behind — is a situation we have not typically seen. Is this a sign that Wal-Mart is looking to boost margins and thus allows other retailers to get closer in price before it responds? Is it just a sign of the growing sophisti- cation with which companies such as Safe- way and Ahold use loyalty card programs? Or is this a peculiarity of the greater Philadelphia market? Or just these particular stores near Wal-Mart’s Willow Grove store? Stay tuned for additional iterations of PRODUCE BUSINESS’ Wal-Mart Pricing report to find out. pb

Reader Service # 81

42 PRODUCE BUSINESS • MAY 2010 Canada’s Culturally Influenced Produce Consumption Experts say a heavily European-influenced culture affects produce retailing, which also causes Canadian retailers to go the extra mile for their customers.

BY THERESA BRAINE

Canadian retailers are working hard to get con- “What it really comes down to is the Canadian diet,” sumers to buy and eat more produce in light of said Rick Antle, president and CEO of Tanimura & increasing rates of obesity and related diseases in Antle Inc., a Salinas, CA-based grower and distribu- that country. tor. “The analogy is that Americans eat for fuel — it’s like a Nascar race, ‘How fast can we eat and get However, statistics indicate that Canadians may back out to the race?’ whereas in Canada’s heart- eat more of the good stuff than their North Ameri- land, the focus is placed on the pleasure of eating, can neighbors. the pleasure of being with friends and gathering at Retailers may not be the deciding factor when a certain time of day. Then there’s the French- it comes to explaining why Canadians consume Canadian love of food, drink, creating the environ- more fruits and vegetables than their U.S. coun- ment and the multiple courses.” terparts. The consensus among food producers “You’ve got the extremes, from the French-Cana- and distributors is that Canadians may simply dians, where a lot of effort goes into the prepara- grow up inculcated with habits that don’t warrant tion, to an American, for whom driving to a 7- the presence of Chef Jamie Oliver and his new Eleven or a McDonald’s is their idea of a meal,” American hit television show, Food Revolution,in Antle continues. “You don’t see a French-Canadian the school cafeteria. driving down the road with a bagel and a cup of coffee on their way to work. They go into a cafe, sit CULTURAL DIFFERENTIATION down, have coffee, talk with friends.” What causes that difference, and can retailers Thus, the differing consumption habits are reflect- help bridge it? The consensus is that culturally, the ed in, rather than formed by, supermarket produce two countries have a different attitude toward food. departments. But with their incorporation of social With early-childhood nutrition education, Canada media, fewer restrictions on what can be imported lays the groundwork for better habits, even though and the attention produce retailers pay to issues sur- the country is not without its obesity problems. rounding consumers, Canadian retailers seem to have a few things to teach American retailers. Shopping habits differ too, according to Dawn Gray, senior vice president of sales, marketing and categories at The Oppenheimer Group, headquartered in Coquitlam, British Columbia. “Canadian consumers are quite comfortable with frequent shopping trips, prioritizing fresh ingredients, often over convenience, for their family meals,” she explains. “Urban Canadians enjoy a specialized style of shopping, similar to those in European countries, making a number of different stops throughout the neighborhood that include the baker, the butcher, the greengrocer, the fishmonger and so on.” “In addition,” Gray continues, “Canada’s culture Canada’s early-childhood nutrition education lays the groundwork for is more European-based than their American coun- healthful adults eating habits. terparts because of Canada’s closeness with the

MAY 2010 • PRODUCE BUSINESS 43 British Commonwealth. That means we are Wand. “This is a result of an increase in probably holding fast to more European immigration from countries around the habits, including a penchant for serving world over the past 30 to 40 years where more fresh fruits and vegetables as a matter produce consumption may be greater.” “Canada’s culture is of routine.” more European- A more diverse ethnic mix also accounts RESULTS AT RETAIL for some of the difference, according to A few other theories also hold sway. based than their Lianne Wand, marketing and communica- “There’s more variety in Canada,” notes Vir- tions manager for the Canadian Produce ginia Zimm, president of Faye Clack Com- American Marketing Association (CPMA), based in munications Inc., located in Mississauga, counterparts because Ottawa, Ontario. “While both countries have Ontario. “We have far more SKUs in Canada, a large multicultural diversity, the ethnic and our produce departments are probably of Canada’s closeness mix of immigrants as a percentage of the far larger.” with the British total population is higher in Canada,” asserts In addition, Gray points out a focus on Commonwealth. That means we are probably holding fast to more European habits, including a penchant for serving more fresh fruits and vegetables as a matter of routine.”

— Dawn Gray The Oppenheimer Group

bulk over packaged goods, which “gives shoppers the sensory experience of selecting their fruits and vegetables, which is lost with packaged items. While we are seeing more grab-and-go options coming into the picture as the demographic bulge shifts to a younger generation, the Canadian supermarket of today is characterized by less packaging than its American counterparts.” Although Canada has fewer restrictions on international imports because its North- ern climates prevent the country from growing much of its own crops as the U.S. does, Zimm and others don’t think that affects consumer preferences. Paul Marier, senior vice president of sales and marketing for Fisher Capespan Canada Inc., out of Montreal, Quebec, reports Canadian chains tend to look to the more worldly U.S. retailers for something to emulate. “As far as stores and produce departments go, while Canadian and U.S. supermarkets might look the same, the differences might lie in a store’s geographic location. For example, a Toronto store may be as cosmopolitan as a Chicago store, while a midland Canadian store might resemble Visit us at CPMA Booth #716

Reader Service # 56 something from the U.S.’s Midwest.

44 PRODUCE BUSINESS • MAY 2010 fear it wouldn’t sell, until media buzz got so own realm. It’s like being more aware and big because of a marketing campaign that being a part of that value chain. Everything store officials changed their minds, knowing is consumer driven, and if the retailer does “Social media is they couldn’t come up empty-handed if a not understand what the consumer wants, starting to become a consumer came in asking for the item. then the retailer will fail.” U.S. retailers have improved vastly over the really hot vehicle for CREATING past 10 years but still have a bit to learn. “It’s all exchanging CUSTOMER VALUE about cross-merchandising,” Zimm says. “Peo- Canadian retailers, Faye Clack’s Zimm ple buy combinations of things. If the food information and theorizes, tend to be more proactive than industry were to take a page out of the fashion ideas about food. It’s American ones. “The retailers in Canada are industry, they would sell more food.” While better equipped to respond to consumer U.S. retailers group prepared items together really about demand because they’re prepared to under- into ready-to-eat meals, most haven’t made the embracing any stand what’s happening outside out of their leap into doing so for produce ingredients and opporunity possible.”

— Virginia Zimm Faye Clack Communications Inc.

Theretailersadvertiseinmanyofthe same ways too, so the stores tend to look similar in each country, Marier adds, which makes the regional differences in Canada much more marked than the cross-border differences with its Southern neighbor. “Atti- tudes can be a bit different, though. A typical U.S. retailer response is something like, ‘Well we’re more meat-and-potatoes people down here,’” Marier explains. “However, Canada doesn’t quite feel that way.” “Early-childhood nutrition education is an important component,” Zimm adds. Thus, consumption habits and trends begin outside the store, and Canadian supermarkets are good at capitalizing on those. “Social media is starting to become a really hot vehicle for exchanging information and ideas about food,” she reports. “It’s really about embracing any opportunity possible. For instance, if an American consumer picks up a magazine with a story about okra, and that magazine is something American women are reading, it behooves retailers to stock okra. They need to be part of the equation in terms of turning this ship around and creating a better health opportunity for all concerned. Canada probably does a better job of that. We differ in that perhaps our industries are more integrated. We pay attention to what’s happening topically, and we respond to that in the retail environment.” However, Zimm notes several U.S. retailers are good at such integration, including Tops, Wegman’s, Harris Teeter and of course, Whole Foods, with its “real plethora of choice.” Then there are retailers such as the one

that opted out of selling a certain item for Reader Service # 3

MAY 2010 • PRODUCE BUSINESS 45 ADVERTISEMENT

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Insight from Mexico An interview with Juan Alberto Laborín, general manager of ALPUM (association of grape producers) in Hermosillo, Sonora, MEXICO

Q: What is the most important thing buy- has been grown by well educated and envi- A: Mexican grapes offer world class ers should know about Mexican Grapes? ronmentally-conscious agricultural busi- quality. We are ready to prove it. I think buy- ness men. All Mexican Grapes are inspect- ers are already supporting us and we appre- A: We are the first option of fresh grapes ed by USDA; and at least other nine gov- ciate it very much. We have been growing grown in the Northern Hemisphere. And, ernment agencies have the right to inspect constantly in volume and the number of the quality of our grapes is outstanding due them for quality and food safety, among stores handling Mexican grapes; grapes to the highly qualified skilled labor from the others. We have all kind of certifications, have proved to be within the top three more Mexican people and of course, the Sonora like Mexican Federal SENASICA, Mexico profitable fresh items in store. Good promo- Desert. Supreme Quality, Mexico GAP, SQF and tion on the quality, food safety, environmen- Global GAP, just to mention some of them. tal commitment and of course social Q: Has Mexican grape production and responsibility of the Mexican grape industry exports increased in recent years? If so, why? Q: What would you say demonstrates the as a whole would add to our success. Mexican grape producers’ commitment to A: Production has been stable and export the US market and the US buyer/consumer? Q: What is in store for the future of the volume has been about the same. The big Mexican grape industry? difference is that Mexican Grapes are going A: Mexican Grapes have been on the to at least three new countries every year, shelves for U.S. consumers for more than A: We expect bigger shelf-space. We are adding more than 25 countries last year! 35 years — that shows confidence and improving year after year in each aspect of product trust. our product, including safety, packaging, Q: What can you tell buyers about the logistics, service, varieties and of course, quality and safety of Mexican Grapes? Q: How can US buyers better support quality commitment. their Mexican suppliers? What can buyers A: Quality and food safety are essential and suppliers/producers do together to in the Mexican Grape industry. This crop better market Mexican grapes?

FOR MORE INFORMATION: Please contact the Agricultural Office at the Embassy of Mexico :

HECTOR CORTES Agricultural Attache (202)728-1727 [email protected] 1911 Pennsylvania Ave NW • Washington, DC 20006

For more information on the Mexican grape industry, please visit www.aalpum.com.mx

Reader Service # 59 meal ideas. Although some chains will display a recipe, the shopper still must roam around the store to find the ingredients, for the most part, adds Zimm. Some Canadian retailers go a step further and hire actual health care professionals — nutritionists and dieticians — to talk to people about nutrition, Zimm points out. “A retailer could really create a value-add for consumers by providing instructions for a nutritionally balanced meal created by an in-store dietician, certified healthy and creating a climate of trust showing they care about the health of their customers,” she explains. “They need more people in the store who actually know about food and While Canada does not grow as much of its own produce as the United States, can talk to the consumer about food. It’s tak- due to its colder climate, locally grown produce is still important to Canadians. ing it to that next level.” People walk up to these staff members, “Maybe it’s just more a part of our nor- demographic analysis, available to help us chat with them and learn about vegetables. mal diet,” says Fisher Capespan’s Marier of solve this fascinating puzzle together.” Zimm notes this illustrates her point exact- Canadian produce-buying habits. “It has In the end, the two countries’ retailers ly, “turning the store into a more service ori- taken hold over time.” may not be all that different, admits the ented locale, than a simple food purveyor. Oppenheimer’s Gray believes keeping CMPA’s Wand. “There are very successful That’s where we’re going.” For example, one the right assortment in each store, catering U.S. retail organizations,” she says. “Whether Canadian company has found a technologi- to the demographics of each neighborhood, in the United States or Canada, more focus cal savvy way to go about this, with the is also key. “With our diverse population, on marketing of produce, selecting the best addition of a touch-screen kiosk featuring the cookie-cutter approach just doesn’t work fit for their own clientele and demographic particular products that prints out recipes in anymore,” she asserts. “The great news is that address the convenience and value the produce department. It is currently that suppliers and retailers have some very proposition sought by an increasing number being tested in 15 stores. effective tools, like scan data, IRI data and of consumers is key.” pb Reader Service # 27 Reader Service # 73

48 PRODUCE BUSINESS • MAY 2010 Reader Service # 84 State Departments Of Agriculture Marketing Efforts As the locavore trend continues, state efforts are more important — and successful — than ever before, and your local state department of agriculture can play a major role in gaining customers’ dollars.

BY CAROL BAREUTHER, RD

Marketing efforts by state departments of says Robert Beets, marketing specialist with the agriculture are nothing new. In fact some Tennessee Department of Agriculture, headquar- programs, New Jersey’s Jersey Fresh and Tex- tered in Nashville. “More than half of consumers as’ Go Texan, for example, have been in exis- we surveyed a few years ago said they were willing tence for over 20 years. to spend more for locally grown products. Their perception is that local is fresher, better for you, Yet, the focus on local products, accompanied by and therefore, more valuable.” consumers’ interest in where their food comes from Retailers that have networked with state agricul- and their desire to support neighborhood farms in a tural departments to implement a locally grown pro- troubled economy are making these marketing gram are reaping rewards to their bottom line. For efforts more popular and productive than ever. example, in 2008, Wal-Mart sourced about $400 mil- The interest in buying local products is present lion in locally grown produce from farmers nation- at both the national level and state level, says wide and calculated that the total freight and gaso- Wendy Lee White, marketing specialist for the line savings combined for peaches alone was more Lakewood-based Colorado Department of Agricul- than $1.4 million, according to a company release. ture (CDA). “Our research shows that 92 percent of Julie Andrews, state coordinator for media and Coloradoans would buy more Colorado-grown prod- advertising at the Austin-based Texas Department ucts if they were available and identified as being of Agriculture, which runs the Go Texan marketing from Colorado.” program, adds, “Recent promotions have led to Consumers are willing to pay more for local, retail sales increases of between 5 and 600 percent for promoted commodities.” Grower members of state agricultural marketing programs are benefiting, too. For example, in 2008, Go Texan members saw more than $129 million in direct sales increases a year from their member- ship, based on reported sales data. Yet, there’s more to effectively marketing locally grown produce in-store than simply having product available. State agricultural departments are the kingpins in helping retailers to do this in a number of creative ways.

WHAT WORKS Most retailers and foodservice operators today embrace locally grown produce, taking advantage of the creative marketing efforts with the help of state agricultural marketing programs. Signage/Point-of-Purchase Materials: Many Photo courtesy of Idaho Department of Agriculture This year, Idaho Preferred, run by the Idaho Department of Agriculture, state branding programs have high recognition of has made a concerted effort to promote the state’s locally grown products their logos with consumers. For example, according at retail. to 2009 survey results, White reports, “Some 67 per-

50 PRODUCE BUSINESS • MAY 2010 Reader Service # 48 cent of people are very or somewhat familiar with the Colorado Proud logo, up from 59 percent in 2008. This awareness is affecting buying decisions and is translating into increased sales of Colorado products. For example, the survey showed that 55 percent of shoppers are looking for the Colorado Proud logo more often when shopping now than they used to, and that 84 percent purchased at least some Colorado products.” Last August, the Denver, CO, division of Safeway Inc., headquartered in Pleasanton, CA, launched a campaign to significantly increase its focus on locally grown produce. This included premier in-store placement for local produce and attractive Colorado Proud-logo signage. Other POP materials included in the campaign are ‘locally Photo courtesy of New York Department of Agriculture grown’ reference maps that geographically Photo courtesy of South Carolina Department of Agriculture illustrate the location of key local farmers Using POP signs throughout the store helps bring attention and sales to locally and tell the farmer’s story. grown products. Colorado isn’t the only state to assist retailers in this way. In Texas, Andrews says, to promote fresh produce through point-of- The Trenton-based New Jersey Depart- “We work regularly with retailers and pro- purchase signage at the supermarket as well ment of Agriculture offers logo stickers, ban- ducers to develop POP materials as well as as through other promotional activities. ners, pennants, bin wraps, price cards and conduct in-store demonstrations to encour- Spokesperson, Yao Seidu, says, “The Kroger posters all with the Jersey Fresh logo. age consumers to purchase locally grown supermarket chain is one enterprise that “These materials are an effective way for agricultural products.” advertises and promotes locally grown prod- retailerstoletcustomersknowwhichprod- Similarly, the Atlanta-based Georgia ucts in close association with Georgia ucts are grown in the state,” says Al Murray, Department of Agriculture assists retailers Grown signage.” director of marketing and development. Last summer, the Buy California Market- ing Agreement, based in Sacramento, partnered with Safeway’s Northern California division and the Southern California division of Albertsons, a subsidiary of Eden Prairie, MN-based Supervalu, in a POP promotion that featured floor decals in the produce departments. Nick Matteis, program assistant manager, reports, “The decals read, ‘Enjoy the color of California and live in a healthier state.’ They each included photos of summer produce items such as cherries, kiwi and asparagus.” Ceiling danglers, channel strips and aisle interrupters with the ‘Certified SC Grown’ logo are all POP that the Columbia-based South Carolina Department of Agriculture has developed for retail use. Martin Eubanks, director of marketing, says, “Many retailers will use POP throughout the store, not just in produce, and tie in all products produced or grown in the state. It’s a good way to have consumers connect the dots.” Last summer, the state introduced a new movement, called Palmettovore — South Carolina is the Palmetto State — which encouraged South Carolinians to purchase and consume only produce and products grown and processed in the state. Ad Programs: For more than a decade, the Florida Department of Agriculture and Consumer Services (FDACS), based in Talla-

Reader Service # 46 hassee, has encouraged retailers to use its

52 PRODUCE BUSINESS • MAY 2010 at home in a down economy offers the and answers questions. Each produce item opportunity to promote locally grown pro- was showcased as part of a featured meal for “The trend toward duce by teaching consumers how to prepare three to four days at a time. Recipe cards for it,” points out Sleep. “Demos are great tacti- the meal were displayed at the Simple Meals more people cooking cal merchandising tools.” kiosk and in the produce department next to at home in a down From February to May, as part of its par- the specific produce ingredients. ticipation in the FDACS’ Fresh from Florida Also as part of the promotion, the FDACS’ economy offers the marketing program, Publix Super Markets, culinary ambassador, Chef Justin Timineri, opportunity to headquartered in Lakeland, FL, featured a taught handling and preparation techniques variety of the state’s produce during its infor Florida products and how to use these promote locally store Simple Meals cooking demonstrations ingredients to make specific recipes at five in stores throughout the Southeast region. Publix Cooking Schools. For example, at the grown produce by During the demo, a Simple Meals associate chain’s Boca Raton cooking school in March, teaching consumers prepares a recipe, offers samples to shoppers Timineri’s menu included Crab Salad in how to prepare it. Demos are great tactical merchandising tools.”

— Dan Sleep Florida Department of Agriculture and Consumer Services

Fresh from Florida logo in ad incentive programs that run annually from November to May. “The program started in 2000 with two Florida chains and we had 298 store ads,” reports Dan Sleep, development representa- tive supervisor. “In 2009, we had 11,728 stores participate and 413,000 ads.” The combination of identifying where the product is grown via use of the Fresh From Florida logo in ads and offering the product at a discounted price has improved the bottom lines of both retailers and growers over the years. “Blueberries are a good example,” asserts Sleep. “In 2002, blueberries were an $18 million market for the state. That was the year we started ad incentives with 329 stores. In 2009, there were over 4,600 store ads and blueberries’ value as a crop had risen to $73 million. This year, we’re starting ad incentives for our early peaches with retailers such as Sweet Bay and Publix. We expect to start with a $1 to $2 million crop.” Taste Demos & Cooking Schools: Offering a taste of locally grown produce is a good way to inform shoppers of its availability and entice them to buy, advises Leah Clark, program manager for Idaho Pre- ferred, run under the Boise-based Idaho Department of Agriculture. “This year, we’re making a push to involve more of our local chains in the program. For example, we’re working with Costco to include more Idaho- grown products in their weekend demos.”

“The trend toward more people cooking Reader Service # 28

MAY 2010 • PRODUCE BUSINESS 53 cantaloupe are displayed for sale and there States Use Social are opportunities for customers to meet local farmers. Networking To Tout Produce Clark details, “Wal-Mart runs its farmers’ market promotion for 10 days. All the fresh ocial networking through Facebook, engage them. Examples of recent updates produce is set up on the sidewalk either Twitter and blogs are ways state on twitter include: “Duda Farm Fresh Foods between the two front doors or in front of S departments of agriculture are now donated over 2k lbs of fresh Florida citrus in the garden center or inside the front of the promoting locally grown produce and help- support of “Fresh for Ellen,” a social media store. Shopper’s can’t miss it, especially with ing retailers to do the same. For example, effort to increase Ellen Degeneres’ consump- all the logos and signage.” Julie Andrews, state coordinator for media tion of fresh produce, and “Take a cooking The biggest promotion the Las Cruces- and advertising at the Austin-based Texas class with Chef Justin next week! Publix based New Mexico Department of Agricul- Department of Agriculture, notes, “We start- Cooking Schools in Jacksonville, Tampa, ture runs with retailers is its Get Your Fix ed our Go Texan Facebook page the begin- Sarasota & Boca Raton.” Green Chile promotion. David Lucero, direc- ning of this year and had 1,300 friends in In March, the FDACS ran a contest on tor of marketing and development, says, the first three months.” Twitter where followers were asked to “When we first started six or seven years ago, In March, an entry alerted followers to a answer trivia about Florida strawberries. The we did the promotion in about 400 stores pri- story in the San Antonio Business Journal department is planning to do more of these marily in the Southwest. Last year, the pro- announcing that television cooking show types of contests throughout the state’s motion ran in over 2,300 stores nationwide host, author and chef, Michael Flores, will be growing season. with retail sales of more than $23 million.” the face of a new bi-lingual Go Texan water- As for retail promotion, Roundtree says, Central Market, an 8-unit chain, located in melon campaign. “When any news stories or information from Ft. Worth, TX, is one retailer that runs a Hatch The Tallahassee, FL-based Florida Depart- Fresh From Florida retailers pop onto our Chile Festival each year. The chain orders ment of Agriculture and Consumer Services radar, we like to share them with our Twitter some eight truckloads of chiles from Hatch, (FDACS) began using social media in 2009, followers and occasionally blog about NM. The festival spans two weekends and fea- says Yolanda Roundtree, development repre- them.” In the past, the department has done tures a recipe contest and cooking classes. sentative supervisor for the bureau of devel- spotlight posts on its blog to help promote Marketing Vehicles: Retailers through- opment and information. “We first started smaller and locally owned Florida establish- out the state of North Carolina call on the our Fresh From Florida blog in January, then ments like farmers’ markets and other retail Raleigh-based North Carolina Department of ventured into Facebook in April, and lastly, outlets. For example, one of the retailers pro- Agriculture & Consumer Services to sched- Twitter in June. We are continually looking filed was Bedner’s Farm Fresh Market in uleitsGottobeNC“BigCart”forstoreopen- for ways to promote our Florida agricultural Boynton Beach. ings and special promotions. The cart, which producers and products and social network- In the future, says Roundtree, “We’re is sponsored by the department and a hand- ing seemed like a new, innovative way to working on a weekly blog feature that will ful of local companies that range from a connect with consumers.” highlight which stores have Florida produce peanut grower to bakery and meat company, 1 As of March, the FDACS has more than on sale that week and specifically what is certainly eye-catching. It is 12 ⁄2 feet tall, 1 2,100 followers on Twitter, over 4,600 fans commodities. We already track these for and 15 ⁄2 feet long, with a 396 Chevy engine on Facebook and average more than 1,000 our retail spring promotions, and we that allows marketing specialist, G.W. Stan- weekly hits on its blog. FDACS staff update thought it would be a great feature to add ley, to maneuver it into position in a super- on Twitter between five and seven times a to our blog and link to Twitter and Face- market’s parking lot. “The shopping cart gets day with a variety of posts including articles, book. We are always looking for new people’s attention and is designed to events, contests, press releases and more. opportunities to work more with retailers increase the awareness to buy North Caroli- Followers are often asked questions to that feature Florida products.” pb na grown or produced foods,” says Stanley. This spring, Carlie C’s IGA, a 13-store

Watermelon Cups, Curried Chicken and Green Bean Salad and Sweet Corn Cakes with Spiced Yogurt Sauce. Simple Meals and the Publix Cooking Schools are components of Publix’s Aprons program that helps introduce consumers to products and teaches them easy ways to prepare wholesome meals. Special Promotions: A farmers’ market promotion is how Wal-Mart stores in Idaho celebrate September, dubbed by Idaho’s governor, in 2007, as Idaho Preferred Month. While state-grown products are available at Wal-Mart stores year-round, this special promotion marks the height of har- Photo courtesy of North Carolina Department of Agriculture vest for local producers. A large variety of The Got to be NC Big Cart is used at store openings and special promotions. fruits and vegetables including potatoes, Sponsored by the NC Department of Agriculture and some local companies, the 1 1 pumpkins, watermelon, squash, onions and cart is a can’t-miss at 12 ⁄2 feet tall and 15 ⁄2 feet long, with a 396 Chevy engine.

54 PRODUCE BUSINESS • MAY 2010 “In recent years, our staff has worked with wholesalers such as Sysco and U.S. Foodservice to distribute local produce to small retail and foodservice outlets

Photo courtesy of Texas Department of Agriculture and to get product Photo courtesy of Colorado Department of Agriculture Consumer awareness of logos for local marketing programs directly translate to increased sales. Thus, it is advantageous for retailers to use POS that incorporate them. from small farms in the western part of chain based in Dunn, NC, used the cart to for planting, growing, harvesting, handling draw attention to local product in-store as and transporting. Before produce reaches the state into part of the opening of its new store in Fayet- the store, Safeway conducts multiple inspec- markets in New teville, NC. tions for quality, flavor and appearance.” TV Advertising: Each year, the CDA State departments of agriculture also York City.” promotes the Colorado Proud program and help growers meet the safety specs desired logo through a television advertising cam- by retailers. White says, “We are educating — Bill Kimball paign on Channel 9, Denver’s NBC affiliate. producers about GAP and GHP and the ser- New York Department The ads run from July to September and vices that are available. Our Fruit and Veg- of Agriculture highlight the quality and diversity of Col- etable Section provides certification. Cur- orado produce and local products. “Safeway rently 15 to 20 produce companies in Col- has more small farmers than mega-farms. In is one of the sponsors of our annual televi- orado have undergone the GAP/GHP Audit recent years, our staff has worked with sion advertising campaign,” says White of Verification Program.” wholesalers such as Sysco and U.S. Foodser- the CDA. Last year, Colorado Proud and Similarly, says Murray of the New Jersey vice to distribute local produce to small retail sponsors such as Safeway, as well as the Department of Agriculture, “We provide and foodservice outlets and to get product Colorado Lamb Council, Colorado Potato training, in conjunction with Rutgers Uni- from small farms in the Western part of the Administrative Committee and the Western versity, to help farmers pass third-party state into markets in New York City.” Dairy Association, ran 1,430 ads and audits. Over 1,400 farms in the state have “In addition,” says Andrews of the Texas reached 98.2 percent of households an aver- received third-party audit certification.” Department of Agriculture, “We are working age of 28.6 times and 97.7 percent of adults, The Texas Department of Agriculture to initiate conversations with major ages 25 to 54, an average of 14.3 times. and Texas A&M researchers are partnering statewide distributors to see how we can “Beyond this,” adds White, “King Soop- to create several GAP manuals, reveals partner to promote locally grown produce ers uses the logo and Colorado Proud mes- Andrews. “With the help of USDA specialty and can help interested retailers. Many sage extensively on billboards, television crop funding, Texas A&M Extension devel- retailers have changed their purchasing and ads and radio ads. Our goal is to continue oped 125 GAP manuals tailored to individ- procurement guidelines to allow for direct our successful television advertising cam- ual grower operations. These manuals help delivery to a local grocery store chain.” paign, and all Colorado Proud members are growers become GAP-certified and better Finally, staff members at state depart- invited to participate.” educated on these practices. This effort has ments of agriculture work as matchmakers In Idaho, Paul Market, an 8-store chain, been expanded and now includes the devel- by introducing growers to buyers and help- based in Boise, runs television commercials opment of a curriculum, workshops and a ing buyers find growers of desired products. each season featuring the store owner invit- Web site to increase producer knowledge The Tennessee Department of Agricul- ing customers to come buy state grown and use of GAP. In addition, the Texas ture’s Beets remarks, “We conduct farm product in-store. Idaho Preferred’s Clark Department of Agriculture will reimburse tours for retail produce buyers. We’ve also notes, “We co-op the ads with them.” producers for a portion of the GAP certifica- conducted Pick Tennessee trade shows with tion fees if they complete the curriculum.” up to 50 booths. The last one we did was in LINKING GROWERS Even with all necessary quality and safe- February, 2008, and we’ll be holding another WITH RETAIL BUYERS ty requirements, small growers can face the one this spring.” Retailers’ desire for locally grown pro- hurdle of getting their product to market. “An electronic version of the New York duce is carefully weighed against stringent This is another area in which state depart- Department of Agriculture’s Farm Fresh specifications, no matter what the size of the ments of agriculture come in handy. Bill Guide,” says Kimball, “is something we hope grower. For example, White reports, “Safe- Kimball, director of ag protection and busi- to have up and running within a year. This way requires its local vendors to meet the ness development services for the New York will make matching buyers and sellers easi- company’s strict safety and quality standards Department of Agriculture, says, “Our state er and faster.” pb

MAY 2010 • PRODUCE BUSINESS 55 ADVERTISEMENT

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ounded in 1968, Inline Plastics Corp. All of our containers are FDA-compliant for nough, GA, as well as a dedicated Research and is a privately owned plastic thermo- direct food contact, and are used in the bakery, Development facility in Milford, CT. We are, forming company that manufactures produce and foodservice markets. Inline Plastics and have always been, dedicated to developing F over three hundred different has manufacturing and warehousing facilities in innovative new products directed by the voice clamshell and two-piece containers. Shelton, CT, Salt Lake City, UT, and McDo- of the marketplace, and committed to providing world class service to our customers. Inline’s new 158,000-square-foot manufacturing and distribution center in McDonough, GA, opened in late 2009 to provide superior service to our foodservice, supermarket, distributor and processor customers in the Southeast. In response to customer demand for environmentally friendly, sustainable packaging, Inline Plastics has converted its entire line of containers to polyethylene terephtalate (PET), the same recyclable material used to make water and soda bottles. In fact, our PET material is produced using a patented new super energy efficient process that reduces the carbon footprint of the material to match that of material containing 50 percent post- consumer recycled bottles, but without the loss of clarity and resiliency commonly found in recycled PET containers. For every ton of Inline PET material used, enough CO2 equivalents are saved to drive an average passenger car more than 2,700 miles! One of our recent innovations in packaging design has been the development of the first thermoformed clamshell containers that are resistant to in-store tampering without the addition of a wrap-around label or a shrink band. Our Safe-T-Fresh® line of clamshell containers features a leak-resistant seal, and they are tamper-evident and tamper-resistant upon closing. The containers incorporate a unique tear strip hinge that we call Safe-T-Gard®, which is easily removed by the consumer to gain access to the contents of the container, but discourages tampering in retail outlets. Safe-T- Fresh® containers are ideal for cut fruit, salads, olives, salsa, sandwiches and bakery products, and are available in round or rectangular styles in 8-oz. through 64-oz. sizes. There is also a version with a built in hang-tab for hanging on merchandising racks. Supporting Inline Plastics’ line of containers is a group of packaging automation systems tailored to handle and process the packing of our containers. Proven solutions for production line automation exist, and our experienced engineering staff is happy to assist our customers in the integration of our automation systems into their current processes and facilities. From container filling and locking to top, bottom, or wrap-around labeling, Inline Plastics is proud to be the only company in the industry providing in-house developed automation solutions that will help our customers reduce costs while increasing throughput and operating efficiencies. You can visit Inline Plastics at Booth 2108 at the IDDBA Expo in Houston, or check out our

Reader Service # 71 website at www.inlineplastics.com.

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ambrailo Packaging is a third-genera- high-speed packaging equipment, the RunRite 4.4- and 6- oz. sizes, as well as 1-dry pint sizes. tion family-owned company that has denests, fills, closes and stacks more efficiently Learn about how Sambrailo Packaging truly served the produce and floral industries and with less down-time than any other current- does “whatever is best for the produce” by visit- Ssince 1923. With locations in California ly on the market. The RunRites are available in ing our Web site at www.sambrailo.com. and Mexico, we have built our reputa- tion on innovation, service and quality. Known for “design to distribution” packaging solutions, Sambrailo Packaging has always focused on “whatever is best for the produce.” This motto continues to be the unifying motivation in the continuing success of Sambrailo Packaging. Sambrailo specializes in improving and designing packaging systems for berries, grapes, tomatoes, leafy greens and value-added produce. We then enhance our products with our superior service — including on-site clamshell labeling, tray make-up, vendor managed inventory and warehouse-to-field distribution. Sambrailo starts by listening — listening to the needs of the grower/shipper, the retailer and the consumer. By staying closely tuned in to each of these three segments, we are able to devise innovative packaging solutions, which add tremendous value to food packaging. For example, Sambrailo was the first to develop a plastic clamshell for berries. Similarly, we have continued to provide improvements to the industry with a patented freight-saving MIXIM System. This unique packaging matrix of clamshells, trays and pallets dramatically cuts down on cooling time and product bruising while maximizing freight cube. Each feature results in cost savings throughout the distribution chain. Through years of experience, Sambrailo has accumulated unparalleled knowledge of both our customers and their products. When this savvy is combined with our ingenuity and ability to stay in front of trends, the results are a win-win for all. For example, we foresaw the effects that the larger strawberry varieties would have on the clamshell capacity needs and have proactively come to the market with a MIXIM LV (large volume) 1-pound clamshell. Similarly, Sambrailo saw an opportunity to remove steps from the process of shed packing leafy greens. This led to the development and introduction of the patented Snap Flap clamshell. This 1-piece design replaces the lid-and-till style container for many retail and foodservice appli- cations. It features a dual-hinged top with a center-snap closure and can be filled, closed and labeled in one efficient process. The label auto- matically provides a tamper–evident seal for consumer confidence and safety. Because the Snap-Flap was initially developed to answer the needs of the leafy greens market, Sambrailo commissioned the construction of an automatic, custom-built packing line. This machine is currently being used to pack leafy greens into the Snap-Flap for retail sales. Sambrailo recently rolled out a family of RunRite blueberry clamshells. Designed for Reader Service # 9

MAY 2010 • PRODUCE BUSINESS 57 Take Stock In Ripened Fruit Programs Growers, shippers and retailers alike are realizing the selling power behind pre-conditioned fruit.

BY HOWARD REILL

When it comes to consumers’ insistence on intent of eating it in the next few hours or days, immediate gratification, fruit is no excep- and they expect to find ripe fruit on the shelves,” tion, which explains the growth in ripened, she explains. “That being said, it is also important or preconditioned, programs at supermar- to have a variety of stages available for those cus- kets across the nation. tomers who want their produce ready in the days following purchase.” While the industry has done a superb job over Jan DeLyser, vice president of marketing for the the past decade of improving packaging, handling, Irvine-based California Avocado Commission post-harvest treatment and transportation to make (CAC), emphasizes retailers can stimulate avocado such programs possible, the hardest work falls on purchases by merchandising some fruit that is ripe the retailers themselves to ensure the ripened fruit and some that will be ripe within a few days. “That is handled properly and promoted well enough to way, shoppers can buy for same-day usage and for move it before becoming unmarketable. later in the week,” she explains. “Point-of-sale mate- Since most produce items are impulse buys, it is rials with recipes and usage ideas promote incre- important to have ripe and ready-to-eat fruit dis- mental purchases.” played, according to Katiana Valdes, marketing One industry executive who asked not to be coordinator for Del Monte Fresh Produce North named asserts, “The issue, basically, is that when America Inc., based in Coral Gables, FL. “The people came up with preconditioning, they thought, majority of customers purchase produce with the ‘The fruit needs to be ready to eat. We don’t want to have to tell consumers to go buy a piece of fruit and wait three or four days.’ That’s really been the motivation behind all of these ripening programs. Now they have developed this technology and found the correct temperatures and humidity levels so that this fruit would be ready to eat.” Has ripened fruit become easier to sell to consumers? “The answer is yes, but not everyone does preconditioned programs,” says Gordon Smith, director of marketing for the Reedley-based Califor- nia Tree Fruit Agreement (CTFA). “Our growers’ products are a little bit different than bananas, avocados and pears. Over the past 20 years, more stone fruit guys are doing preconditioning programs. However, it really depends on the retailer-supplier relationship and what they’re trying to provide.” Smith continues, “The technology was developed across a huge amount of varieties over the years on how to put them in preconditioning rooms. They were able to increase different humidity levels and temperatures, and then once they got it to the desired pressure, drop it back down and Separating product by stages of ripeness enhances a preconditioned program, ship it that way. What it means overall — depend- as consumers can buy fruit to eat immediately and some to eat later. ingontheretailer—isthatsomepeoplefeelit’sa

58 PRODUCE BUSINESS • MAY 2010 Reader Service # 47 better piece of fruit.” DeLyser notes, “A good way to increase Crunches, Leaners, avocado sales is to promote ripe avocados. Shoppers demand ripe avocados as much as In-Betweeners four-to-one over firm fruit.” early three years ago, the Reedley- while only 11 percent of women prefer them STAGED EVENT based California Tree Fruit Agreement on the firm side. For display purposes, Del Monte has N commissioned a national telephone • Fruit lovers in the South, more so than found that the product should be separated survey asking the question: Are you a those in other parts of the country, tend to by ripeness stage to facilitate different con- Cruncher, Leaner or In-Betweener? Here is enjoy their peaches, plums and nectarines on sumer choices. “Separation of ripe and what it turned up about American peach, the soft and juicy side. In fact, 35 percent of unripe fruit also helps reduce damage and plum and nectarine consumers: residents of the South prefer their plums to be bruising since customers won’t have to shov- •17 percent are Crunchers. The Cruncher soft and juicy, compared to 30 percent in the el and poke through all the product to find enjoys the taste and texture of peaches, West, 29 percent in the Northeast and 27 per- the ripeness they are looking for,” Valdes plums and nectarines that are on the firm, cent in the North Central part of the country. explains. “It is imperative the fruit is not only crisp side. • Americans aged 65 years and older are ripe, but of the right quality. Quality should •33 percent are Leaners. These con- more likely than their younger counterparts always come first. If a retailer skimps, it sumers like their fruit soft and juicy. to be Crunchers. When it comes to eating hurts sales and, in turn, the industry.” •50 percent are In-Betweeners. The In- California nectarines, 21 percent of those 65 “The trend for bananas, for example, is Betweener looks for fruit that is softly firm and older are Crunchers, while only 11 perfor there to be a ratio of 60/40 or 70/30 ripe and slightly juicy. cent of the 25-to-34-year-old demographic to green,” Valdes points out. “But the prima- • Men are more likely than women to be prefers their peaches, plums and nectarines ry objective is to ship bananas at a consistent Crunchers, preferring their peaches, plums firm and crisp. pb color stage.” Displaying both color stages two and nectarines firm and crisp. For example, Source: The California Tree Fruit Agree- and five, for instance, will provide con- 18 percent of men prefer their peaches crisp, ment and PPN Network sumers with the choice to purchase the ready-to-eat product immediately or to have some ready for the next days. “Also, this hurt sales more than not having color.” to buy it and we can find a way to get it to practice allows there to be a good product According to Del Monte, an increasing them, there is a payoff.” rotation at store level,” she adds. “It is best to number of retailers is finding that in order Thermal Technologies specializes in the have a larger variety at retail, as nothing can to maintain sales in the avocado category it ripening piece of the supply chain. The com- is important to stock mostly ripe and ready- pany designs and builds custom ripening to-eat fruit. “Customers prefer to purchase rooms for a variety of wholesalers and retail- ripe avocados,” Valdes suggests, “and most ers. In fact, says Byrne, retailers are probably stay away from purchasing them green. his largest customers. “Nine of the Top 10 “The trend for Many retailers have requested that Del retailers in the United States, including com- Monte ripen the avocados for them, while panies such as Wal-Mart, Kroger and Safe- bananas, for some have chosen to ripen the product way, use our system. But then there are guys example, is for there themselves. Either way, if you have a ready- like Blue Star Growers, which is a pear ship- to-eat fruit on the shelf you should let con- pers, in Cashmere, WA, that also has our to be a ratio of sumers know by stickering them.” rooms. They condition pears and send a 60/40 or 70/30 ripe The CAC’s DeLyser agrees, reporting, whole truckload of ripened product at a time “Avocados with ripe stickers can outsell non- to Wal-Mart, for example, which will distrib- to green. But the stickered avocados by as much as 28 percent ute that internally to their various stores.” at retail.” Compare those numbers to shrink The technology available today has primary objective is levels of 3 to 8 percent from retailers that allowed for a great deal of consistency, to ship bananas at a have a dedicated ripe avocado program, which has always been a top priority for according to DeLyser, and the advantages of retailers. “They want to know exactly what consistent color offering preconditioned fruit become clear. they are going to get so there are no surpris- stage. This practice es; that the fruit is not riper or less ripe than JUMPING HURDLES expected,” he adds. allows there to be a David Byrne, vice president of sales for Byrne points out that retail handling is good product Thermal Technologies, with headquarters in and always has been a prime challenge Blythewood, SC, is among those who has when it comes to perishables such as rotation at store noticed the demand for ripened fruit ripened fruit. “Retailers tend to have a vary- level.” swelling. “Watching what’s occurred with ing labor force,” he remarks. “Managing the the supply chain over the past 10 to 15 fruit at retail is key. There is a saying in the years, there is technology in place now that banana industry that the last 50 feet of the — Katiana Valdes would allow you to provide a consistently 2,000-plus-mile supply chain, from the back Del Monte Fresh North ripened product,” he says. “It may not be room to the retail display, is the toughest America Inc. obvious to everyone, but consumer research part. You can do everything right all the way shows that is what consumers want to buy. to the back room, and then it can fall on its It follows naturally that if consumers want face if it gets mismanaged.”

60 PRODUCE BUSINESS • MAY 2010 because it couldn’t make it through the retail going forward will be for more fruit to be channel and hang on the shelf. It’s like a dog preconditioned, since retailers have helped “Avocados with ripe chasing its own tail in a way,” he explains. shoppers become accustomed to finding stickers can outsell The answer, Kihlstadius believes, is ready-to-eat produce. “I think that for retail- twofold: Retailers need to be more accepting ers, what it means is that as the produce sec- non-stickered of ready-to-eat fruit and train their depart- tion becomes more competitive. With an avocados by as much ment personnel to help move it more quick- increasing number of SKUs, people want to ly. “It’s like a restaurant flipping its tables,” be able to eat whatever it is they’re buying as 28 percent a he maintains. “That high school kid working immediately. Consumer research shows that retailer.” in the produce department after school has thereisnooneperfectpeach.That’swhere a hard time telling people what’s good and a retailer can offer a variety of options, bad. Teach him to educate the consumer on depending on what consumers want.” — Jan DeLyser what to look for in mature fruit.” “While some consumers like firm, California Avocado CTFA’s Smith suggests that the trend crunchy stone fruit,” Smith notes, “others Commission

What can go wrong during that last leg of the journey may be less a matter of what employees do than what they don’t do. When it comes to bananas, for example, which is where much of Byrne’s experience lies, “The fruit needs to be uncapped,” he notes. “The lids need to be taken off; the plastic needs to be pulled back — from the back room to the retail display — because ripening fruits tend to produce varying amounts of heat.” Back rooms of stores are generally not ideal conditions for all of the types of fruit being sold. “There might, for example, be a cooler back there that is perfect for pears, but you can’t put your bananas in it,” Byrne explains.“Youhavetotreateachitemthe way it best needs to be treated based on your best circumstances.” “What that means to managers is that if the back room is very warm, they had better get the bananas uncapped and their plastic peeled back,” translates Byrne. “Otherwise, the fruit is going to heat up too rapidly and ripen too fast and then you’re going to have fruit that ends up not being sellable. It’s all about managing the process for the 24- to 48-hour period that it’s in their possession. I think most stores these days are getting a delivery every two days, and many are getting daily deliveries, so the longest any store would typically have to manage fruit would be for two days.”

WORKING TOGETHER Dennis Kihlstadius, CEO of Produce Technical Services, located in Bemidji, MN, points out the dichotomy of an industry working hard to increase produce usage and growers who want to get something to market without it being rejected. “You have someone at the retailer’s corporate office saying, ‘I want something the customer can take and eat,’ and the grower is becoming

paranoid because he’s had fruit rejected Reader Service # 5

MAY 2010 • PRODUCE BUSINESS 61 Reader Service #72 62 otadepr ecadsr htwork that sup- merchandisers expert technical and full ensure port provide and We them loss weight. for moisture box this against do guard can and rooms, pressur- ripening modern, ized our with in-house, centers, avocados products, distribution and certain bananas ripen as fruit, to such ripe not prefer choose retailer but gener- a them Should profit. help new ate to with and retailers opportunities provide sales to is competitors, want.” can they consumers what products, their get of sure make range say can would that retailers We offering 56.] by page that [See on In-Betweener? You sidebar Are or related called, Leaner was Cruncher, It cam- ago. a education years was few consumer a that our paign fact, of In focus juicy. the and soft them prefer RDC UIES•MY2010 MAY • BUSINESS PRODUCE DlMnesga, adssy,“ieits “like says, Valdes goal,” Monte’s “Del

Reader Service #16 Reader Service #75 uc ramr ovninl crunchier conventional, and more pieceoffruit.” soft a the fruit or of their juicy desires want and the who plums meets consumers a peaches, that offer — — to fruit nectarines able stone be of con- to range their important about It’s more sumers. learned have as and sophisticated they fantastic, more become become have has retailers chain cold the con- store’s individual profile.” each sumer fit that recommenda- tions customized mer- and product chandising optimal ensure that manage- tools category ment sophisticated uses Monte merchandising.” product and quality, display to product department optimal produce guarantee retailer’s our with Tels od”Sihcnlds i that “is concludes, Smith word,” last “The “Del adds, Valdes customers,” retail “For pb Reader Service #88 Reader Service #74 Reader Service #35

MAY 2010 • PRODUCE BUSINESS 63 Southern Vegetables Coming On Strong In spite of an unusually cold winter, the South shall raise vegetables again!

BY KEN HODGE

The winter of 2009-10 will be remembered as Tim Greene, a partner in Hollar and Greene Pro- an unusually cold one in the South. duce Co. Inc., a family-owned cabbage supplier in Boone, NC. “Everything planted for the end of April Tomatoes were in short supply and other South- and the first of May will come in the middle of ern vegetables are as much as two weeks behind May. Everything is all pushed back and will come schedule, thanks to cold, wet weather in Georgia, on together. It seems like a new pattern. There is the Carolinas and the rest of the South. Now that no way to estimate seasons.” spring is finally here, consumers are eager to eat At the Atlanta Farmer’s Market in Forest Park, traditional Southern favorites such as tomatoes, GA, Andrew Scott, sales and procurement manager peppers, beans, cucumbers, squash and corn. As for General Produce Inc., expects prices to moder- retailers promote these fresh, tasty items, they’ll ate as production normalizes in warmer weather. bring shoppers flocking to the produce aisle ready “It’s been a real challenge,” he reasons. “Prices have to shake off the winter blues. Thanks to better been so high, consumers have not been buying as weather, they shouldn’t have to wait any longer for much Florida-grown product. Most of the United abundant supplies. States has been relying on Mexican-grown produce. In May, consumers will welcome lower pricing on FLAVOR WORTH THE WAIT cucumbers, bell peppers, squash and green beans. Southern vegetables are definitely worth the We should see pricing come down due to volume. wait and supplies may be excessive, as harvest in With two, possibly three growing regions harvesting some growing areas may overlap and bring lower at once, there should be promotable volume to go FOB prices compared to March and April. “The around for everyone.” weather has thrown a wrench into the works,” says In Florida, freezing temperatures affected a variety of vegetables, but Brian Rayfield, vice president of sales and marketing at J & J Produce Inc., in Loxahatchee, expects good production later from Florida and normal supplies from growers to the North with whom he works to provide year-round supplies to buyers. “We’re coming off a very challenging winter,” he admits. “Many items were unavailable for a long time. We’ve had the highest retail FOBs I’ve ever seen. We expect things to be normal in Georgia and to overlap with Florida at first. We hope to have plenty of fresh, good-tasting produce at more affordable prices.” Hurley Neer, director of sales and marketing at Eubanks Produce Inc., located in Lucedale, MS, says weather has pushed the company’s peppers, cabbage, cucumbers, eggplant, snap beans, tomatoes, squash and sweet onions “back a bit,” but adds, “we’ll have very good volume this year. We’re expecting no change in that. One of our biggest Photo courtesy of C.H. Robinson Worldwide Inc. Consumers look forward to Southern staples such as squash, beans, corn, advantages and differentiators is harvesting and peppers and cucumbers. getting produce to market within 24 hours, deliver-

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Reader Service # 38 Georgia, particularly Southeastern consumers. Lots of retailers have worked with our growers on locally grown products out of Southern Georgia for metro markets. I think locally grown promotions will continue to expand. People are interested in knowing where their food comes from.” Daniel Whittles, director of marketing and product development at Boca Raton, FL- based Rosemont Farms, a C.H. Robinson Worldwide Inc. company, adds, “Demand and acceptance for Southern vegetables is outstanding at both the retail consumer level, as well as with the foodservice customer. There is such a strong quality and value proposition, it makes consumers happy and accepting of these vegetables.” Speaking about Georgia and its neighbors, Brim adds, “Most definitely we are a

Photo courtesy of C.H. Robinsonpower Worldwide Inc. here in the South in vegetables. We don’t have the acreage California does, but, ing fresh produce to customers daily. We’ve there forever,” he says. “Anybody here knows as for farmers in Georgia, South Carolina, had calls asking about our start date.” that it’s a popular local tomato. When they Alabama and the rest of the Southeast, we first come out, they’re very popular.” grow very good vegetables.” LOCAL PRODUCE: Food Lion LLC of Salisbury, NC, uses pro- THAT SOUTHERN MYSTIQUE motional materials from state departments Consumers in the South love locally of agriculture to alert customers to locally grown vegetables, Neer maintains. “When it grown produce, according to spokesperson, gets warm in the Gulf region, they start Tom Gardner. A chain owned by Brussels- looking for their homegrown items,” he based Delhaize Group, Food Lion touts North “Buyers want to points out. “We raise tried-and-true vegeta- Carolina’s “Got to Be NC” marketing cam- bles. People look forward to them every paign and uses other in-store resources to support local year. These things are very popular in the highlight local produce. South and consumption continues to grow.” “At Food Lion, we want to ensure that we farmers, but they J.D. Grubb, director of procurement at C.H. have the highest quality fruits and vegeta- only harvest two or Robinson Worldwide Inc., in Eden Prairie, MN, bles our customers demand at the low prices agrees. “Consumers certainly want to support they expect,” Gardner explains. “We have three months a year, more local products,” he states. “The 2009 FMI seen some consumer trends for locally then they’re out. We Grocery Shopper Trends study found one in grown campaigns that are raising awareness every six U.S. consumers is going out of his or of local produce with our customers; howev- help small regional her way to buy local food as much as possible, er, when possible, we have always strived to growers standardize with potential for further growth, especially carry all local vegetables…This includes veg- among younger consumers. Many retailers etables that aren’t traditionally considered to quality control and food service operators are already imple- be Southern, though they are produced local- menting a local program. There is a consumer ly in the South.” and food safety impression that local products are fresher, compliance and get healthier and taste better.” AFORCEON Locally grown produce is a “big deal” at THE EAST COAST their produce to Piggly Wiggly Carolina Co. Inc. of Charleston, Considering freshness, flavor and vari- buyers we service SC, according to Stan Ahl, produce director. ety, southern growers are a real force in the “Wedoaveryintensivelocalprogram,start- East Coast supply chain, says Bill Brim, part- year-round. Buyers ing in the spring and all through the summer ner in Tifton, GA-based Lewis Taylor Farms. can support locally and even into the winter,” he explains about “Southern vegetables are well accepted in produce promotions. “Locally grown items the East,” he says. “We sell back into Chica- grown produce are very much in demand when they come go, too. With our Georgia Grown project — without worrying out. The consumer knows they are local, whenever anybody grows in Georgia and especially the fruits.” usesthelabel—itisseenasqualitymer- about quality or Just across the Intracoastal Waterway chandise. Once consumers see it’s Georgia from Charleston, local growers produce Grown, they really like that.” safety.” tomatoes on Johns Island, where a local Charles Hall, executive director of the eatery is even called the Tomato Shed Café. Lagrange-based Georgia Fruit & Vegetable — Brian Rayfield Charleston shoppers prize Johns Island toma- Growers Association, agrees, “Overall, con- J & J Produce Inc. toes, asserts Ahl. “They have grown tomatoes sumers know these items are coming from

66 PRODUCE BUSINESS • MAY 2010 Reader Service # 10 Rayfield of J & J Produce points out, “We were involved in locally grown produce before it became a buzzword. That’s what we do,” he says. “We find the best local growers and work with them. Buyers want to support local farmers, but they only harvest two or three months a year, then they’re out. We help small regional growers standardize quality control and food safety compliance and get their produce to buyers we service year-round. Buyers can support locally grown produce without worrying about quality or safety.” The mystique of high quality, flavorful Southern vegetables is bringing back some crops formerly grown in the South, according to Nick Augostini, marketing specialist at the Raleigh-based North Carolina Depart- ment of Agriculture. He says the proximity of Southern farms to Eastern markets

enables them to deliver vegetables at peak Photo courtesy of Vidalia Onion Committee freshness and flavor, making them The Vidalia Onion Committee’s new promotion extremely competitive. “Big broccoli farms pairs Shrek Forever After with Vidalia onions and uses kind of died off in North Carolina and now a variety of attention grabbing, high-graphic POS they’re making a comeback,” he explains. items. “Weusedtogrowalotofbroccolihereand it just dropped off. It’s a great crop. I think SIGNIFICANT the reason for the comeback is all the SOUTHERN PLAYERS health benefits. Farmers are growing what It may be small, but neighboring South people want. That’s Marketing 101.” Carolina also plays an important role in the Southern vegetable deal, according to Mar- tin Eubanks, director of marketing for the Columbia-based South Carolina Department of Agriculture. “We are a player in summer fruits and vegetables. We’re not the biggest state and not the biggest in production, but with our location and window, our growers do a fantastic job with high quality, depend- able products.” South Carolina has also seen a marked increase in crop diversity recently as growers try new crops and bring back older ones, according to Eubanks. “We grow the typical array of Southern vegetables and have some new things like broccoli and older crops like asparagus,whichwegrewbackintheearly 1900s. We raise all major types of tomatoes and have seen a significant increase in sweet corn production in the past five years. Our corn season starts in late May or early June and can carry us through the summer. It’s a nice addition to our product mix.” Piggly Wiggly’s Ahl points especially to items such as broccoli and broccoli crowns, cilantro, parsley and green onions that add local flavor to the fare in the franchise’s supermarkets. “They’re grown here pretty much year-round,” he notes. “We absolutely try to carry as much locally grown produce as possible.” South Carolina peach grower, Chalmers Carr, president and CEO of Titan Peach

Reader Service # 43 Farms Inc., in Ridge Spring, has diversified

68 PRODUCE BUSINESS • MAY 2010 Technology Helps Southern Growers Deliver Quality Vegetables s trucking costs rise, Southern growers hydro-cooling costs over multiple crops. They “You can’t ship produce hot any more. People are looking outside the box to crops crush ice and inject slush into broccoli, sweet want quality.” A ordinarily sourced in the West, using corn, greens and green onions. Iceless green Growing demand for fresh local vegetables technology to supply fresh, competitively onions are another option. “Slush ice for broc- is a grassroots phenomenon, according to priced vegetables to Eastern retailers. “Obvi- coli is expensive, but we also use it on mus- Nick Augostini, marketing specialist at the ously, there’s a freight advantage,” says Greg tard, collards and kale,” says Bill Brim, partner Raleigh-based North Carolina Department of Cardamone, general manager for L & M Com- in Tifton, GA-based Lewis Taylor Farms. “We Agriculture. “People are more conscious of panies Inc., in Raleigh, NC. “We’ve seen a had a good crop last fall and more good look- what they eat,” he explains. “There’s a lot resurgence recently in locally grown Southern ing stuff is coming. Chain stores like buying it more call for broccoli. I visited a farm with 15 vegetables. There is a trust factor with your from the East Coast.” to 20 acres and watched it grow over two or local grower. He’s in the area. He does a Stantonsburg, NC grower, Bill Harrell, sells three months. I took some home. It was prob- good job with quality and flavor. Consumers lettuce to Eastern Fresh Growers Inc., located ably the best I ever had. It came right from the relate to that and regard products from neigh- in Cedarville, NJ. “Once you put your knife to farm into my home and didn’t have that trip boring states as local, too. Retailers want lettuce,” he says, “you want to get it in a cool- across the United States.” farmers to grow more items,” he adds. “Some- er within an hour. We can do that.” Flavor can help the South compete, accord- thing different is always a plus. Anything local South Carolina peach grower, Chalmers ing to Daniel Whittles, director of marketing generates interest.” Carr, president and CEO of Titan Peach Farms, and product development at Boca Raton, FL- New California emission standards are Inc., in Ridge Spring, has added bell peppers based Rosemont Farms, a C.H. Robinson costly, causing many truckers to halt service to and broccoli to his mix. “We make our own ice Worldwide Inc. company. “To improve the fla- the Golden State, says Doug Stoiber, vice pres- and bought a slush ice machine from Texas for vor profile of fruits and vegetables, we’re ident of produce transportation operations for cooling,” he says. “That’s key, especially for experimenting with nutrients above and L & M Transportation Services, also in Raleigh. spring broccoli when it gets hot. Cooling it right beyond standard nitrogen, potassium and Instead of more trucks, Stoiber predicts the from the field is very important.” phosphorus,” he explains. “This is being driven opposite. “Marginal operators went out of Clayton Rawl Farms Inc., headquartered in by some of our customers. They want us to business,” he reasons. “That creates upward Lexington, SC, grows parsley, cilantro, South- work with these breakthrough products to pressure on rates. We’ll see a real shortage.” ern greens and other items, cooling nearly take the value proposition for consumers to Southern growers of broccoli, asparagus, everything, reports manager, Spanky Rawl. the next level and create branding and differ- lettuce and other items, spread forced-air and “We’ve been doing it for years,” he notes. entiating opportunities for them.” pb his operation, expanding his offerings to retailers and becoming a player in new market windows. “We’re growing broccoli and bell peppers,” Carr reports. “Bell peppers and peaches have a lot of similarities in harvest and other areas, though not in growing. It was a natural crossover and broccoli became a rotation crop for peppers, a pretty good window for us to be in. We have extended our marketing window from 16 to about 38 weeks a year.”

OGRES AND ONIONS Georgia’s famed Vidalia onions don’t need an introduction as a major southern star. This year’s crop may be behind schedule, but Vidalias will be just as sweet as ever, says Wendy Brannen, executive director of the Vidalia Onion Committee (VOC), based in Vidalia, GA. Cold wet conditions delayed growth, but the crop has rebounded more than expected. “We likely won’t have as many jumbos as normal,” she observes. “We’ll have plenty, but we’ll also have beautiful consumer packs with mediums. That’s a good thing to leverage with shoppers to sell more onions, especially with this year’s Ogres and Onions campaign.” That campaign means bags of Vidalia onions and point-of-sale materials will be

more colorful this year, thanks to striking Reader Service # 32

MAY 2010 • PRODUCE BUSINESS 69 70 OAOS TOO POTATOES, SWEET SOUTHERN materials POS full-wrap Other include and says. bags Brannen header bags,” bins, half bins, the in have discussion original onions a and from Taken ogres common?” do in “What is, year this stimulate to parents, sales. onion also but not children, target only materials The DreamWorks. with new the After with in Forever car- tying original and the movie off toon playing Shrek, of images iigu o er bu we potatoes.” sweet been about had years we for information up of piling pile their brush the on lit product our put Websiteandranitforaquarter.Thatkindof They of Season. Pick combined the called a Watchers did Weight with States Potato program United Sweet the National of the Council ago, “About recalls, years orange- Wooten three the crop, of root longtime promoter fleshed A tireless NC. and Chadbourn, Produce grower Bailey in E. based Wayne Co., of Wooten, CEO George and to owner mar- according growing niche, one ket relatively and three developments to recent thanks significant popularity made in have gains but staple, Southern nosi h hr run.” short the the in of onions success the future. on Shrek the banking for also equity We’re audiences brand younger preserve reach and to created campaign We’ve school this excited. on We’re ads cartons. as well radio milk as Vidalia consumer ads, new have newspaper brand and also a We’ll con- to site. The them Web Vidalias. drive buy will to test kids stores and grocery adults driving to Brannen about all had,” “It’s ever asserts. we’ve campaign keting cross-mer- retailers and promotions. for displays chandising contest clever a execute also who is a There with game. such Wii prizes Nintendo featuring a contest as kid-friendly a with and pads recipes, tear-off toppers, bin etrfrm,te’els expensive.’” potatoes less sweet they’re people are me, for think only better ‘Not I and think, pound. to pound a began a 89-cents $1.23 at at sweets major whites a market, had than local chain and our more high In for potatoes. really selling sweet up were price potatoes the white shot contin- their Wooten “It have years,” ues. to in going inventory were lowest they thought try osi e adn hthls o, Wooten too,” helps, that garden, her in toes RDC UIES•MY2010 MAY • BUSINESS PRODUCE h usinpsdo iai materials Vidalia on posed question The we oaoshv ogtaiina a as tradition long a have potatoes Sweet Idvnuet a ehv h etmar- best the have we say to venture “I’d Te,ls er h ht oaoindus- potato white the year, last “Then, Nw sMs bm rw we pota- sweet grows Obama Mrs. as “Now, rn ihaut ohl elmore sell help to adults with brand Shrek Shrek hog iai partnership Vidalia a through , oi,ti hm eet on repeats theme this movie, lo tns ipa o and box display stands, floor he oee After Forever Shrek Shrek ds “The adds. nldsteueo opn n nincrease an meals.” and home-cooked coupons of This of dollars. use their the stretch to includes ways try- find and to prices seen ing lower have for we looking categories, section,” consumers all produce “In our reasons. in he volume sales experiencing good are for “We appetites vegetables. not shoppers’ Southern have dampen South to the seemed in conditions nomic displays see you Now year-round.” sweet June. since carrying after long stop potatoes that down- would been a retailers hasn’t on some It been has spiral. economy ward demand the percent slower as 20 even seen a haven’t about in We That’s pound increase. year. a Per past about demand. the up meet is to consumption country capita the over increasing is all Acreage phenomenal. around is Carolina Easter North of of out “Movement potatoes concurs, sweet NC, grower Kinston, potato sweet in third-generation a Inc. like sugar blood potatoes.” spike white don’t diabetics, they for and good because calories They’re nutrients. in in low high they’re for good because They’re dieters years. sweet few about past articles the potatoes of “It’s number concludes, the Wooten amazing nation, the around recipes.” the of garden, one was House pie potato White sweet the and from items only ade fFo inare,ntn eco- noting agrees, Lion Food of Gardner Farms Hill Tull of president Hill, Kendall shows produce at figure familiar A ..Rbno Worldwide Robinson C.H. one consumers.” younger u fhso e way her or his of out n neeysxU.S. six every in one obylclfo as food local buy to rnssuyfound study Trends osmr sgoing is consumers ihptnilfor potential with uha possible, as much seilyamong especially rnChef Iron rcr Shopper Grocery ute growth, further Te20 FMI 2009 “The ..Grubb J.D. — hleg a ouse to was challenge Inc. pb

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PRODUCE BUSINESS • MAY 2010 71 Score Big This Summer With South African Citrus More than ever, retailers have an exciting promotional opportunity as South Africa sits in the world’s sporting spotlight this summer.

BY JODEAN ROBBINS

During a few short weeks this summer, the African summer citrus,” affirms Paul Kneeland, world will focus on South Africa as it hosts vice president of produce and floral for Parsippany, the World Cup of soccer. Retailers who put NJ-based Kings Super Markets. “Every year, the extra emphasis on South African summer cit- quality gets better and better and sales expand.” rus can likewise score big during the summer By considering some tips from a sports play- months. book, retailers can further increase profits and sales of this growing category. “Promote, promote, promote the South African summer citrus program and increase your produce KNOW WHO YOU’RE dollars,” asserts Tom Cowan, South African citrus DEALING WITH sales manager for DNE World Fruit Sales, based in South Africa is the second largest exporter of cit- Fort Pierce, FL. rus in the world and produces 60 percent of all cit- Retailers report an increase in enthusiasm and rus grown in the Southern Hemisphere. Joretha sales for South African citrus each year. “We had Geldenhuys, CEO of the Western Cape Citrus Pro- our best season ever with South Africa last year, so ducers’ Forum, (WCCPF) headquartered in Glouces- we’re looking forward to a great summer this year,” ter City, NJ, explains, “Other than the United says Dick Stiles, director of produce and floral for States, our primary export markets include the Redner’s Markets Inc., a 38-unit chain headquar- European Union, the Far East, the Middle East, tered in Reading, PA. Russia and the rest of Africa. The South African “There is definitely a huge trend in South fruit bound for the U.S. consumer comes mostly from the Elephant’s Valley region between the towns of Citrusdal and Clanwilliam, about two hours Northwest of Cape Town and the Northern Cape, near Kimberley.” The WCCPF is a consortium of 350 South African growers eligible to export summer citrus to the United States. “Our purpose is to facilitate logistical, marketing and sales support coordination,” says Geldenhuys. “Our mission is to maintain and expand our role as the preferred supplier in the United States and throughout the world, be a reliable supplier of safe summer citrus for global markets and grow and ship the best summer citrus in the world to the U.S. marketplace. U.S.-bound summer citrus meets and exceeds USDA and FDA pro- tocols by rigorously adhering to its self-imposed Seal-of-Approval Guidelines.” WCCPF recently commissioned qualitative

Photo courtesy of DNE World Fruit Sales research of key citrus buyers at both national and In addition to the many varieties of South African citrus American con- regional supermarket chains to gain their percep- sumers already enjoy, they can now look forward to grapefruit as well, tions of trends in South African citrus sent to the thanks to new rulings by USDA’s APHIS. U.S. market. Geldenhuys notes, “For the most part,

72 PRODUCE BUSINESS • MAY 2010 Reader Service # 1 those interviewed agreed that South African in Cape Town, South Africa. “Producers in summer citrus was trending positively and this deal live close to their market, probably “Last year, our that their eating quality continues to closer than most. Packinghouses are improve. All respondents said that quality of renewed all the time with the best technolo- volume was up quite fruit was their number one criteria when gy to make sure pack-outs are aimed at buying citrus. This was followed by price retail quality. Innovation and new concepts a bit so I know we and the reliability of supply and level of are a continuous drive!” hooked more people. support provided by the suppliers and their “We have seen a trend by retailers using importers. All recognize the safety and reli- more Clementines in bags, both 2- and 3-lb. Getting people to try able supply of excellent quality citrus from sizes,” says Cowan. “The bags allow retailers them is the key.” South Africa.” to target a more attractive price point for consumers than the traditional 5-lb. CARRY ALL THE PLAYERS Clementine box. Consumers like the sweet, — Dick Stiles Offering the greatest possible variety is juicy taste of Clementines, plus the conve- Redner’s Market Inc always a good approach in any produce cate- nience of easy peeling and being a seedless gory. “Our strategy is to include as much vari- fruit. Clems are a great product for children ety as possible,” reports Kneeland. “It’s not because they’re easy to handle and peel, increase sales of South African citrus,” says only having what everybody else has, but also and have a great sweet taste.” Geldenhuys. “We are currently working with having unique items that make us different.” our importers to formalize a promotion pro- The first shipments of Clementines and DON’T MISS THE PASS gram for the summer which, among other early Navels from South Africa are available Summer citrus is a great way to move activities, will include product tastings at on supermarket shelves from late May and into the excitement of summer fruit and select stores.” the first week of June. The season ends in many consumers are ready to receive it. “Promotions make the product promi- early November with the final shipments of “Buyers can be more attuned to the demands nent in the well supplied summer fruit sea- Midknights — a Valencia variety. and expectation of consumers,” suggests son,” says de Waal of Fisher Capespan. “It “Clementines and Navel oranges are the WCCPF’s Geldenhuys. “In addition to the allows for the product to be retailed on an most popular varieties in the summer citrus extensive range of local summer fruits on even playing field. It also gives everyone a lineup and account for the majority of offer, consumers have demonstrated a desire good idea on new concepts that work, be it sales,” reports DNE’s Cowan. “There are for South African summer citrus. When the changes on price, packaging or different dis- some smaller volume niche items that do shelf space is provided and the products are tribution channels.” well such as Minneolas and Cara Cara made available, they sell. Buyers, who are POS materials and demos are also useful Navels. Minneolas have a bright orange aware of this and provide all the options con- tools for retail promotion. “Educate con- exterior color and a slightly tart taste. The sumers desire and expect, will reap the ben- sumers on these imported varieties by using Cara Cara has an orange exterior color, but a efit of incremental sales and profits.” effective point-of-sale material and conduct deep red interior flesh. These specialty “We take less gross profit margins on in-store sampling of these items when they items are often offered by the higher end some of the varieties so we can get more are at their peak of flavor,” advises Cowan. retailers looking for something different to aggressive on our price points,” states “Promoting items when they are at their attract customers.” Redner’s Stiles. “We then combine the peak flavor and supply volumes are crucial In addition to these established varieties, pricing with sampling. Last year, our vol- for repeat sales.” some long awaited changes are on the hori- ume was up quite a bit so I know we “We believe that if retailers avail them- zon. Geldenhuys reports, “Following a recent hooked more people. Getting people to selves of POS material currently in develop- ruling by the USDA’s Animal and Plant try them is the key.” ment for this season and couple it with in- Health Inspection Service, (APHIS) which Ignoring summer citrus is akin to miss- store tastings, it will bring consumers a slice has proclaimed new areas of South Africa ing a huge chance to score a goal. “In the of all the romance of Africa and link the eligible to export citrus to the United States, past, we’ve missed these extra sales,” vibrancy of the continent with the great expectations are that the American con- laments Stiles. “If we can change our mind- taste of our citrus,” states Geldenhuys of sumer will be able to enjoy South African set and focus on citrus in the summer, there WCCPF. “We have no doubt the superior eat- grapefruit for the first time this summer. The are probably a hundred different ways we ing quality of the fruit will convert to sales WCCPF is delighted with this development. can promote, especially cross-promote, cit- for the retailers.” The first shipments of grapefruit should start rusatthattimeofyear.” While summer citrus may be considered arriving in the United States around the first “Featuring South African citrus in bags or out of place, more and more retailers are or second week of June.” multiple units helps drive sales dollars in recognizing the potential of citrus at this Producers are also increasing the diversi- the produce department,” adds Cowan of time of year. “Oranges don’t typically fall ty of what they already export. “Certain vari- DNE. “The bigger the display space for under the category of summer fruit, but it eties of Late Mandarins and Late Australian South African citrus, the better the retail doesn’t mean you can’t have success pro- Navels, both known for their excellent eat- sales. Keep displays neat, clean and well- moting,” says Redner’s Stiles. ing quality, have been planted over the past stocked with fresh product. Integrate bags “There are customers who eat citrus 24/7 few years,” explains Geldenhuys. “Deliveries with bulk product to try and get a bigger so there’s always a good reason to promote of these varieties will begin increasing from ring sale.” the category.” this season.” “Instead of looking at summer citrus as “New varieties are researched, planted USE CREATIVE PLAYS competition to other fruit sales, we look at it and tested continuously,” reports Hannes de Any promotion, but especially creative as an opportunity to cross-merchandise and Waal, general manager for Fisher Capespan, ones, will see results. “We know promotions incorporate it with the other summer fruits,”

74 PRODUCE BUSINESS • MAY 2010 explains Kneeland of Kings Super Markets. youth soccer than any other sport in the “We can promote it as a new crop, and peo- United States. DNE and the South Africa Cit- ple like the freshness of it.” “The link between rus Producers have promotional funds avail- Summer outdoor entertaining also pre- soccer and South able to publicize this summer event.” sents a huge field of opportunity for promo- Indeed, another summer soccer champi- tion and suggestive selling. “Citrus flavors African citrus is an onship presents promotion potential for can be associated more with summertime,” retailers from July 20 to 25 as the South states Kneeland. “You can promote summer opportunity. Even African citrus producers sponsor the 2010 citrus for cooking, grilling, use in marinades though citrus is not U.S. National Youth Soccer Championships. and salads, and even drinks like lemonade.” “WCCPF recognizes that youth soccer is a “The cooking aspect for summer grilling officially linked to natural vehicle for promoting summer cit- or BBQs can be a great tie-in,” suggests FIFA, we can rus,” adds Geldenhuys. “It’s the perfect half- Stiles. “Cross-merchandising with other time snack and is enjoyed by millions of fruits in the department as a summer drink promote it like we boys and girls throughout the soccer season. is a fun and profitable idea.” do with the Super The WCCPF will again sponsor the 2010 U.S. And, once again, providing variety in the National Youth Soccer Championships to be category yields results. “We’ve seen retailers Bowl, for example played in Kansas City, Missouri. We will creating a summer citrus section and group- have an expanded presence at the tourna- ing all the different varieties in one area of saying ‘The Big ment this year when we will again distribute produce,”reportsCowanofDNE.“Featuring Game.’” oranges to each team at half-time, as well as Clementines the week before the Fourth of provide spectators with citrus snacks July in 2- or 3-lb. bags and then again later throughout the event.” in July will also help drive sales. Increased — Paul Kneeland “Three years ago, we started with region- sales also occur when Navel oranges are fea- Kings Super Markets al promotion programs using soccer as a tured in multiple units such as 3-for-$1.99 or theme,” explains de Waal. “Tournaments in bags during the August period and again were sponsored by retailers and importers after Labor Day when kids return to school.” growing and important market. “Retailers against a background of South African cit- can leverage the 2010 World Soccer Cup in rus. At this stage, the game itself with its TIE-IN THE BIG GAMES South Africa by tying in South African citrus strong popularity in the United States pro- The 2010 FIFA (World Soccer Federation) with the youth soccer leagues in their area,” vides opportunity as much as the upcoming World Cup South Africa to be held June 11 explains Cowan. “More kids participate in World Cup.” pb through July 11 presents a great informal tie-in for much retail promotion. “The world’s attention is certainly on South Africa with the World Cup,” states WCCPF’s Geldenhuys. “Although, the WCCPF is not a sponsor of FIFA-related activities there is likely to be a naturally occurring link to our citrus and soccer.” “South Africa will be prominently featured in the global media in June and July,” says de Waal of Fisher Capespan. “Pushing our produce to the front of shops and displaying it prominently will lead to better sales.” Similar to other major sporting events, while retailers may not be able to promote the event itself, they can make the link to soccer and tap into the excitement of the time. “Retailers can harness this connection to promote South African citrus,” says Knee- land. “The link between soccer and South African citrus is an opportunity. Even though citrus is not officially linked to FIFA, we can promote it like we do with the Super Bowl, for example, saying, ‘The Big Game.’” “Soccer is increasing in interest in the United States and creative retailers can definitely tie in a soccer theme,” agrees Stiles. As soccer continues to increase in interest among U.S. kids, retailers have another huge opening to make a connection with a Reader Service # 89

MAY 2010 • PRODUCE BUSINESS 75 O R G A N I Despite Obstacles, Organic C

P R Berries Continue To Gain O D U C Favor With Consumers E Pricing pressure and supply issues may create challenges for the M organic berry crop, but retailers and consumers continue to request them. A R BY BRYANT WYNES K erhaps the biggest issue facing E those involved in growing, distrib- T uting and selling organic berries is that of supply. It’s a new twist on I the old “If you build it, they will N Pcome” line from the movie Field of Dreams. G In the case of organic berries — if you grow them, they will sell.

CONFRONTING THE CHALLENGES Chris Christian, vice president of marketing for the Watsonville-based California Strawberry Commission (CSC), believes that, just as with other organic products, simply committing the acreage to organic berries was perhaps one of the biggest hurdles standing in the way of an ample supply. But that’s an issue that is being There is much debate over whether it is better to include organic berries in the addressed. “Organic berries are a growing store’s conventional “berry patch” or with other varied organic produce. category. We have seen remarkable increases in supply over the past seven years, the organic retailer such as Whole Foods. We And then there is the price. As with any which is directly related to growers making want to be sure that we can help them with produce item, supply dictates price. No sur- a commitment to organic,” explains Christ- an ongoing supply for their customers inter- prise that pricing on organic berries runs ian. “We saw a big jump in organic berry ested in organic.” higher than traditional berry prices. But is acreage in 2006-2007. This increased Califor- This isn’t to say that increasing acreage is that really an issue? “Organic pricing has nia organic berry acreage by 50 percent and the only issue the category faces. “Just like gotten better,” asserts Gary Myracle, execu- naturally added to the marketable supply.” their traditional counterparts, organic tive director of produce field procurement Cindy Jewel, marketing director for Cali- berries are a fragile commodity, subject to for Kansas City, KS-based Associated Whole- fornia Giant Berry Farms, in Watsonville, the weather,” remarks Simcha Weinstein, sale Grocers Inc. “We don’t think the differ- CA, agrees. “California Giant has been in the director of marketing with Albert’s Organics ence is enough to turn away the regular or organic berry business for four years and Inc., in Bridgeport, NJ, which has been dis- even the occasional organic shopper.” While has seen consistent growth each of those tributing organic berries since 1982. He adds traditional shoppers might shy away from a years,” she reports. Jewell believes that sup- that weather is a huge variable, often creat- $2.99 price point for organic versus $1.99 for plies are such that attention now can turn to ing product shortages and affecting the qual- traditional berries, he maintains the differ- building a stronger year-round organic berry ity of the fruit. Given the larger amount of encedoesn’tseemtobeadeterrentatretail program. “Everyone is trying to increase acreage to traditional berries, this, too, is an to the organic customer. their offerings of organic berries, not just obstacle for organic. “Actually, the price variation is narrow-

76 PRODUCE BUSINESS • MAY 2010 Reader Service # 20 O R Organic Integration Or G A Organic Destination? N o what is the correct way to mer- However, Jim Roberts, vice president of chandise organic berries? While sales at Naturipe Berry Growers Inc., locat- I S there are arguments on both inte- ed in Salinas, CA, counters that integrating C gration and segregation, apparently there organic berries with traditional works bet- is no right or wrong answer. ter. “We’ve actually tested this at a tradi- Gaines Chamberlain, produce merchan- tional retailer and found that integration P dising manager at Salisbury, NC-based works better because it attracts new or R Food Lion LLC, prefers to keep organic medium users to the product,” explains. berries merchandised with other organic Simcha Weinstein, director of market- O produce. “It creates a destination shop for ing with Albert’s Organics Inc., in Bridge- D our customers interested in organic prod- port, NJ, sees both sides of the coin. “I ucts,” he maintains. “They know exactly have found if you have the organic berries U where to find what they want.” in a separate section with other organic C Gary Myracle, executive director of items, the advantage is that shoppers E produce field procurement for Kansas know when they have landed in your City, KS-based Associated Wholesale Gro- organic area. The downside is that you cersInc.,agreesthatstoresneedtohave may have conventional berries featured at M an organic section. “But most of the time, the front of your department and if shop- organic berries are integrated with tradi- pers don’t see the organic section, they A tional berries, especially when they are may assume that the conventional berry R on promotion.” display is your only offering.” pb K

E ing,” contends Jim Roberts, vice president of seems to be settling somewhat, and overall T sales at Naturipe Berry Growers Inc., locat- pricing and sales seem to indicate that.” ed in Salinas, CA. “A 30 percent difference Another factor that has encouraged sales I was the norm, but we’ve seen the price gap is a steady supply of crop, due to the N drop to 20 percent. It certainly has the acreage that has recently moved to organic. G potentialtonarrowevenmore.” According to California Giant’s Jewell, Weinstein agrees, noting that price natu- “Organic berry growers have made a com- rally depends on supply, adding that he has mitment. The last thing they want to do is seen prices equal to conventional product at shift organic ground because of a temporary times when the market is flooded with consumer shift in shopping preferences.” organic berries. What’s more, the current downturn in the VARIETY PROVIDES economy doesn’t appear to have had a greater ADDED SALES BOOST than expected impact on organic sales for a While strawberries might account for the variety of reasons, the first being the contin- largest share of the organic berry category, ued growth of the organic customer. Suppliers varietyberriesarecontributingtosalesand and retailers alike agree that the traditional attracting new customers. Roberts credits organic berry shopper remains committed to buying organic. “Heavy users always buy organic,” emphasizes Roberts. “While we may have seen some ‘medium’ users leave, they are moving back.” The CSC’s Christian reports the numbers One-lb. clamshell back this up, noting that 1-lb. clamshell organic strawberries organicstrawberriessawa13percent growth in 2009 vs. 2008, outpacing regular saw a 13 percent berry growth figures. “Organic strawberries growth in 2009 vs. are enjoying an increase in household penetration and volume, reflective of the overall 2008, outpacing berry category,” she points out. Weinstein notes organic berry pricing regular berry growth has actually experienced a type of deflation. figures. “Even though our overall box count sales may be up, overall dollars sales may not

Reader Service # 62 reflect that,” he explains, adding, “the dust

78 PRODUCE BUSINESS • MAY 2010 Reader Service # 54 M M O G O G C D C K U N N R R R A A E E P O G G O C D C T N K U N R R R A A E E P T I I I I 80 EST EALSUCCESS RETAIL TO KEYS are it.” with berries job organic good very of merchandis- a to line doing commit entire to the able ing are retail- AWG who “However, ers Midwest. not the is in category berry huge Gro- organic the Wholesale admits Associated cers of an cate- Myracle of entire gory. the more merchandising make when to impact stores enables variety couple past the over years.” of category true the to in leading growth They’re — phenomenal. example are — for berries blackberries, variety and seen But blueberries have then. since and triple 2005 sales in organic with back started strawberries growth. we Farms, sales Naturipe healthy “At for variety increased sago daa el”h suggests. he well,” as idea good a out. weeks is two weeks to eight promotions organic least “Extending at promotional meaning advance pricing, vol- and accurate forecasting materials, ume POS Weinstein, include to which any according of promotion “must-haves” produce traditional the require details. he periods,” promotional planting and “We program. harvest timeswithgrowerssothatweareontopof this coordinate of to part work essential peri- an harvesting is regional ods on promotional based our solid calendar for a tools Developing marketing retailers.” and educa- signage innovative tional cen- providing often around are tered efforts “Our dis- Weinstein. programs,” closes promotional opportunities from largest coming the see promotional “We customers’ efforts. its for support this to committed retailer program.” can of the results type for the good “But be notes. he SKUs consider,” additional to or and space requirements issues, cost display organ- cate- are their shrink “There build business. high to ic opportunity a an either or as gory retailers this that view and pro- one, can mediocre successful a a and between gram difference the is ed neeyhn agn rmpromo- models. pricing from to meeting ranging tion by everything working category on is entire needs side the supply develop the retail to the effort, while of that the growth adding leads says, increased to she key category,” the are users efforts,” says. promotional he and in item advertising focal their a recommend berries have organic “I’d make they trials. retailers berry growth organic the in on seen capitalize to ty RDC UIES•MY2010 MAY • BUSINESS PRODUCE rmarti esetv,ti increased this perspective, retail a From ucsflogncbrypromotions berry organic Successful provide to working is Organics Albert’s focus that maintains Roberts Naturipe’s aionaGatsJwl set,“New asserts, Jewell Giant’s California opportuni- an have retailers adds Roberts pb

Reader Service #29 Reader Service #40 Reader Service #68

Reader Service #53 Reader Service # 90

PRODUCE BUSINESS • MAY 2010 81 M E R C H A Sweeten Cherry Sales For N D I S Maximum Sales And Profits I N Maintaining shelf space, eye-catching displays and full-scale G promotions will keep consumers coming back for cherries.

R BY CAROL BAREUTHER, RD E V herries are a sweet profit produc- I er, especially in the summer. In E 2009, dollar contribution to total E produce department sales sur- W passed 4 percent after June 1 Cand reached 6.3 percent in July, according to Perishables Group data as supplied by Yakima, WA-based Northwest Cherry Grow- ers (NCG). Jeff Fairchild, director of produce for New Seasons Market, a 9-store chain based in Portland, OR, says, “Cherries are No. 1 in dollar sales for two to three straight weeks in July. We display them front-and-center, give them plenty of space and feature them prominently in ads.” To maximize cherry sales and profits, both now and in the future, retailers need to focus on selling a greater volume, over a Ribboned Rainiers make an eye-catching color break between dark cherries. longer season, and at profitable prices. Here’s how. Hunt Co., based in Oakland, CA, remarks, What is crucial for the Northwest crop is “In the Northwest, we expect a ‘normal’ sea- to be in the market in time to make the PLAN AHEAD son with picking starting as early as the first Fourth of July holiday promotions. Mast The domestic cherry season should start of June versus the second or third week as explains, “This is the one big summer holi- early this year, advises Roger Pepperl, mar- has happened the past two years.” day that hits for cherries and it’s a time keting director for Stemilt Growers Inc., Therewillprobablybeanoverlapof when consumers are in the mood to buy with headquarters in Wenatchee, WA. “We’re Washington fruit with California this year, fruitforpicnicsandbarbecues.Wecan looking at harvest starting the last of April although not a huge one, recognizes Loren move up to a quarter of the Northwest cher- or first part of May out of California. This Queen, marketing and communications ry crop over this holiday.” should allow us to capture the Memorial manager for Domex Superfresh Growers BJ Thurlby, president of NCG, under- Day ads that we missed last year due to the LLC, headquartered in Yakima, WA. “But scores this year’s earlier availability. “The crop coming on later and the holiday being that’s not necessarily a negative,” he adds. important message to retailers this season is earlier in the month.” “We don’t want to lose momentum for cher- that we expect to have significant volume by The Lodi-based California Cherry Adviso- ry sales as the industry transitions from Cal- June 15th to 20th,” he details. ry Board (CCAB) recommends promoting ifornia to the Pacific Northwest.” Volume of cherries out of the Northwest cherries at least once during May to alert Bob Mast, vice president of marketing for is expected to be large again barring any shoppers to the availably of this seasonal Columbia Marketing International Corp. weathereventspriortoJune,saysHunt. fruit. In addition, stores should open up dis- (CMI), in Wenatchee, WA, agrees. “It’s an “Last year was a record crop and expecta- play space in May ahead of when good vol- advantage to us if California has a good sea- tions are that we’ll be in that same threshold ume and the high-quality Bing cherries are son because it means retailers will maintain of volume again. Industry pundits have available in June. the enlarged shelf space and continue the given estimates ranging from 16 million to Grant Hunt, president of the Grant J. promotional push.” 23 million cartons,” he continues. Suffice it

82 PRODUCE BUSINESS • MAY 2010 Reader Service # 23 M to say that there will be abundant supplies Volume starts to dwindle in August and ed in variety name when it comes to cher- E for full-scale promotions by retailers under bottoms out by Labor Day, but many ries, says New Seasons’ Fairchild. “They any set of circumstances.” growers are pushing this late season enve- know the name ‘Bing’ and many know R The Northwest is home to about 50,000 lope. Pepperl explains, “With acreage at Rainiers because they look different, but C acres of cherries, reports James Michael, over 3,000 feet and late-season varieties after that, it’s just ‘sweet, dark, red’ cherries from British Columbia, we can push to H NCG’s promotion director. “Acreage has rela- that shoppers look for.” tively stabilized over the past few years, and Labor Day. There are two benefits to this. Fairchild realized this fact a few years A combined with the geographic spread, One, a lot of consumers want to buy cher- ago when he offered five varieties of dark N should allow for good-sized, reliable crops ries later into the season. Two, there red cherries for customers to sample. “They for seasons to come,” he details. aren’t as many cherries around at this couldn’t really tell the difference, not D D Cherry supply once looked like a bell- time and pricing is good.” enough to buy one over another,” he says. I shaped curve with a plateau of 7 to 10 days, “It would be hard to market cherries by vari- S says Stemilt’s Pepperl. “Now, that plateau is SELL CHERRIES ety, too because shippers don’t pack them about 25 days out of the Northwest or nearly BY ANY NAME that way — not by individual variety except I the whole month of July.” Consumers are only somewhat interest- for the Bing. Plus, the availability of individ- N ual varieties is short and the tail-end of one season runs into the start of another.” G G There is value in using the name Bing in ads and signage, asserts Carolyn Becker, R West Coast and national accounts marketing manager for CCAB. “It’s the oldest variety E and well recognized because it is large and V eats well.” Bing is the most recognized variety in the I retail world, says Grant J. Hunt’s Hunt. “But E if you have a nice, dark red variety that is W firm and sweet, you’ll find little resistance.” Dave Parker, director of marketing for Scattaglia Growers & Shippers LLC, in Traver, CA, agrees and says, “It’s vital to have interchangeability, especially early in the season. Bings are naturally late, so it’s important to get started with some of the newer, early red cherry varieties such as Brooks and Tulare when the season starts.” However, use of the names of non-Bing varieties could be more than non-effective and even detrimental, says Domex’s Queen. “For example, if you advertise Lapins, consumers might react by asking where the Bings are and feel like they should wait until the Bings come in to buy cherries. Ideally, these other varieties should be signed and advertised as ‘sweet, dark, red cherries.’” CMI’s Mast says, “We did a promotion in the past that featured the Sweethearts, but it wasn’t a big success.” Similarly, says Stemilt’s Pepperl, “We’ve featured the Staccato, a new, late-season variety, but it was more of a niche item.” “However,” says Suzanne Wolter, director of marketing for the Rainier Fruit Co., in Selah, WA, “there are still tremendous opportunities to educate both consumers and retail personnel on the differences between dark sweet and Rainier cherries. The majority of consumers still have never tasted, or even heard, about Rainier cherries. Our efforts should be focused on encouraging trial and awareness of Rainier cherries, thereby growing sales.” “Research conducted on behalf of the

Reader Service # 24 NCG shows that any effort to educate con-

84 PRODUCE BUSINESS • MAY 2010 Visit us at CPMA Booth #1013

Reader Service # 37 M sumers, via demos and secondary displays, E for example, will lead to a lift in Rainier cherry sales,” reports Michael. Cherries: One Of The Last R Education is part of the Rainier cherry Seasonal Fruits C display at Jungle Jim’s International Market H Inc., a single specialty store, headquartered resh cherries are one of the few and also to make consumers aware of in Fairfield, OH. “We put up information items in the produce department their availability.” A about the Rainier, what it is and what makes F that don’t have year-round availabil- Aside from getting enough space, N it different, such as its extreme sweetness,” ity. Imports start in November and run Roger Pepperl, marketing director for says Dave Brossart, general manager for pro- through January from Chile, then pick back Stemilt Growers Inc., headquartered in D D duce and floral. up in May from California and end in late Wenatchee, WA, says, “Cherries are such a I Rainier cherries Brix in the mid-20 range August or early September from the North- high dollar item that they usually com- S compared to 17 or 18, which is found in red west and British Columbia. Thus, there can mand a prominent location.” cherries. Higher sugars as well as a greater be as much as five or six months with no “It’s no problem to find a place to mer- I expense to farm and pack, due to the high fresh cherry availability. chandize cherries,” says Jose Manzano, N Brix level, means Rainier cherries command “Seasonality is what gets consumers director of produce for Dorothy Lane Mar- a premium price. excited,” says Jeff Fairchild, director of pro- kets, a three-store chain based in Dayton, G Stemilt’s Pepperl says, “Rainiers can sell duce for New Seasons Market, a 9-store OH. “After all, the nature of the produce for up to $1-per-pound or more than red chain based in Portland, OR. “That’s a business is to have seasonal products.” R cherries, so retailers really have to tout good thing.” In the future, the real challenge may be them as a sweet treat so consumers realize There are, however, challenges. a longer cherry season, says Grant Hunt, E what makes them different. This means in Suzanne Wolter, director of marketing for president of the Grant J. Hunt Co., in Oak- V signage and ads and even via electronic Rainier Fruit Co., based in Selah, WA, says, land, CA. “The cherry season has gotten media such as Facebook and Twitter.” “Re-educating produce personnel about steadily longer with each passing year. I Approximately 30 percent of the North- proper handling on an annual basis can be We’ve found that cherries are in most E west Rainier cherry crop is sold during the a challenge, especially with the high retailers now for several months versus W second week in July, thanks to promotions turnover and part-time employees. In addi- several weeks. That means we need to centered around National Rainier Cherry tion, allocating space for cherries for such help the retailer maintain excitement on Day, on July 11. The NCG’s Michael says, a short time is challenging as this fruit cherries and make sure they don’t “We do a big public relations push at that needs the space to encourage purchase become a secondary item.” pb time. Many retailers jump on board and run with the theme in ads and promotions. For example, last year, more than 30 retail ing the large, sweet cherries.” store. This is definitely a consumer retailers chains made mention of National Rainier Grant J. Hunt’s Hunt agrees, adding, want to attract.” Cherry Day.” “Consumers have made a clear vote with Today’s primary cherry consumer “Ideally, retailers should offer dark red their limited expenditures that they prefer remains affluent, metropolitan-based and sweet or Bing, Rainier and organic cherries large, sweet, firm cherries. The industry has well educated. However, opportunities exist to maximize sales,” advises Stemilt. adjusted to this changing demand pattern by in start-up families, millenials and middle- In 2010, California is estimated to pro- adopting horticultural practices that will income families. These consumers respond duce 1.5 million cartons of organic cherries meet this consumer demand. Pruners have to messages of health, fitness, family and out of a projected 12 million-box crop, while been working hard this winter to try to max- affordable luxury products, according to Washington is forecasted to produce a 3.5 imize fruit size and light penetration for the research conducted in 2009 by The Perish- million-box crop of organic cherries out of a highest quality cherries.” ables Group for the Yakima-based Washing- total 18 million boxes. Rainier Fruit’s Wolter Consumers shop with their eyes and ton State Fruit Commission. says, “The organic segment of cherry sales is large cherries attract them, says Michael. still very small and somewhat stagnant. As a “Sixty percent of cherries are purchased SWEETNESS RULES grower, we struggle to maintain pricing at a on impulse.” Retailers want to be the first to offer their profitable level and are struggling to deter- In fact, small fruit size put a big damper customers cherries when the domestic sea- mine what volumes of organic cherries we on profitability and moving last year’s son starts. Growers, too, want to get their need due to production challenges and gen- record Northwest cherry crop. Andy Tudor, product out to the market when demand is eral demand. Nonetheless, we will continue marketing director for FirstFruits Marketing high,supplyislowandpricesareatapre- to grow them and they do have a place in of Washington LLC, in Yakima, WA, says, mium.But,crucialtorepeatsalesarecher- our product mix.” “Large fruit is easier to move through the ries that Brix high, meaning that they are system than small.” sweet to eat. SIZE MATTERS “The most commonly requested size is Fairchild, at New Seasons Market, says, 1 Bigger is better when it comes to cher- 10 ⁄2 row,” reports Domex’s Queen. “Some “We place a garbage can right by the display 1 1 ries. Brossart says, “We source the biggest growers do 9 ⁄2 to 10 row and others, 11 to 11 ⁄2 so customers can sample and easily discard cherries we can find, both red and Rainiers. row. It’s all a function of what price point the the seed. Cherries that are sweet sell.” 1 That means a size 9 ⁄2 or 9, preferably,” he retailer wants to achieve.” Chuck Sinks, president of sales and mar- specifies. “Competitors might be able to pro- Cherries are not as price-sensitive as keting for Sage Fruit Co. LLC, based in Yaki- mote smaller cherries for $1.59-per-pound other produce items, reports NCG’s Michael. ma, WA, says, “Fruit that is picked and sold while I have to be $2.29, but we let cus- “The cherry consumer spends, on average, early and isn’t at its peak Brix can hurt tomers be the judge, and so far, they’re buy- 10 percent more per trip to the grocery sales. That’s not good for the market.”

86 PRODUCE BUSINESS • MAY 2010 The desire to harvest early is greater in tray pack is less expensive than the Makes sure displays are big enough to California as the state is first to offer domes- clamshell and it offers the benefit of maximize sales. Last July, cherries had the tic cherries, but it can happen in the North- reduced plastic and greater product shelf second-smallest shelf space in the produce west, too if California’s crop is small or fin- life,” Queen explains. department, but returned the strongest sales ishes early. Richard Sambado, director of CMI’s Mast says, “There have been rum- efficiency of all fruits. Even in an aggressive domestic sales at Linden, CA-based Primav- blings in the industry of a small, 3- to 4-lb. retail market, cherries returned an average era Marketing Inc., says, “There’s a tempta- corrugated box. However, I think consumers of $208-per-spare-foot, per-week per-store, tion to jump the gun on some of the early will want to still be able to see the cherries.” according to research conducted in 2009 by varieties that have lower acidity, but not as The Perishables Group for the Washington much sugar.” GIVE CHERRIES State Fruit Commission. Brix is a key component in deciding ENOUGH DISPLAY SPACE “By increasing shelf space for cherries, when to harvest cherries, says Grant J. Build cherry displays front-and-center, retailers can increase their volume and dol- Hunt’s Hunt. “Once cherries are picked, advises Grant J. Hunt’ Hunt, “so they can’t lar sales,” says NCG’s Michael. “Though this they don’t continue to ripen as other fruits be missed.” would seem to be intuitive, it’s not necessar- do, so we leave them on the tree until they reach the desired Brix level for the respec- tive variety.” NCG’s Thurlby says, “Brix levels in red cherries can range from 14 to 23, depending on the variety and the location where the cherry is grown. Only the Rainiers have a marketing order that sets the minimum Brix level at 17. This isn’t too big of a hurdle as most Rainiers Brix well over 20 percent.” In general, Hunt recommends, “Retailers should look for a box of cherries that appears fresh with green stems and the flesh should be red throughout. Chances are these have been picked at the proper time and will deliver a great eating experience.”

JUST SELL IT PACKAGED Bagged, rather than bulk cherries, are the norm at Jungle Jim’s, says Brossart. 1 “We’ll sell red cherries in 2 ⁄2-lb. bags and organic cherries in 1-lb. bags.” “The slider bag is the predominant pack of the industry,” says Grant J. Hunt Co.’s 1 Hunt, “and most packs are either 2- or 2 ⁄4- lb. bags.” “While approximately 85 percent of cherries sold out of the Northwest are bagged,” reports NCG’s Thurlby, “about 10 percent of the crop is sold in clamshells.” Hunt adds, “We continue to see growth in clamshells with a range of 1 to 4 pounds as the primary options.” “Club stores have had success with larger clamshells,” says Wolter, “where the consumer is used to buying in bulk and paying a set price, versus the per-pound selling price at mainstream retailers.” “On the other hand,” says Scattaglia’s Parker, “there’s an opportunity to pack a smaller clamshell, less then 2 pounds, and offer a better price point than a larger bag.” More Rainier cherries will go into clamshell packaging, says the CCAB’s Beck- er. “They bruise easily and the rigid clamshell is protective.” Some growers, such as Domex, have started to offer tray packed cherries over-

wrapped with a breathable plastic film. “The Reader Service # 58

MAY 2010 • PRODUCE BUSINESS 87 W M W M G D C N N H R R A E E E G S D C V N N H R R A E E E S V I I I I I I

88 Reader Service #94 Reader Service #42 Reader Service #45 RDC UIES•MY2010 MAY • BUSINESS PRODUCE

Reader Service #44 Reader Service #67

Reader Service # 17 od he atn fcere tatime. a at cherries of and cartons boxes three apple holds empty over slides display that high-graphic Summer sleeve loca- theme a secondary beach offers in Dream CMI up example, set For be tions. can that units customers.” to more bags of 2-lb. needs the alongside meet 1-lb. clamshells offering or Bings, bags of display secondary cherries.” between red ribboned dark are the break, they color when eye-catching especially Michael. an advises make Rainiers, “These be should play are fruits two consumers.” to the indistinguishable bagged, sometimes When grapes. next to cherries placing “Avoid recommends, er adds. he feet,” square cherry Northwest retailershadshelfspaceinexcessof40 top-performing many “However, the study. of stores the the in by participating allotted space shelf average the under- than space.” other shelf and effect utilized space no shelf showed increased others sev- vol- with fact, and sales In dollar ume found. decreased study actually items the eral as case the ily aysipr fe retnigdisplay freestanding offer shippers Many or display dual a “Consider adds, Becker dis- cherry a of percent 20 to 10 least At Beck- CCAB’s the display, a setting When was feet square 21.5 that adds Michael naPrsalsGopsuyconducted study Group Perishables a In in 2009, a secondary high graphic display at picks up. They find that simply a prominent percent discount on Fourth of July ads to the checkout counter led to a 13.6 percent display or letting consumers know cherries kick off their season. Last July, the average increase in volume, a 22.4 percent increase are available is very powerful independent pricing for red cherries was $2.61 off ad and in dollar sales for all cherries, a 32.5 percent of price reduction.” $1.92 on ad. increase in volume and a 22 percent “Many retailers are pressured to hit a Take a break from promoting dark sweet increase in dollar sales for Rainier cherries. specific gross profit percentage,” says CMI’s cherries by offering a Rainier or organic, Mast, “but instead, we push gross profit dol- says Stemilt’s Pepperl. “A general rule is to CROSS MERCHANDISE lars. An ad with cherries priced at $1.99- to promote six to seven times during the WITH RECIPES $2.49-per-pound is more productive than a Northwest season. This means one the last “Most consumers like to eat cherries out 99-cent per pound ad, which doesn’t do any- week of June for the Fourth of July, three of hand,” says Jose Manzano, director of one — retailer or grower — any good.” weeks in the month of July, and a mini- produce for Dorothy Lane Markets, a three- Memorial Day and June are key promo- mum of one promotion in August. This is store chain based in Dayton, OH, “Although tional times for California cherries, while how you’ll best maximize your cherry they do like recipes, too.” Northwest shippers like to see a 30 to 40 sales,” he explains. pb Last year, the supermarket’s cooking school taught a class with a dinner party theme that featured Mexican Fried Ice Cream — vanilla ice cream with whipped cream, honey and fresh cherries served in a cinnamon sugar-dusted tortilla shell — as the dessert. Recipes are one of the tools that can be used to boost cherry sales, according to Hunt. “Consider putting a recipe in your advertising circular and on your Web site,” he says. “Or, create a cherry-rama with recipes for cherry pies, cobblers and specials on other cherry items throughout the store.” “Put cherry usage ideas in customers’ minds,” asserts CMI’s Mast, “by cross-merchandising with short cakes in the bakery, yogurt in the dairy department and bagged salads in produce.” This season, the CCAB has partnered with Salinas, CA-based Epic Roots in a promotion that will feature a tape-on recipe and coupon for a bag of cherries on bags of Epic Roots Mâche. The recipe will feature a salad made with the mâche, feta, roasted pine nuts and fresh cherries.

STRATEGIZE PRICING AND PROMOTIONS Cherries are available in the winter and summer. “However, our biggest promotions are in the late spring and summer when volume is highest, prices are best and product is freshest,” notes Manzano. Pricing trends vary from year to year, says Hunt of Grant J. Hunt. “In 2008, we experienced a low volume crop and retail pricing was at an all-time high. In 2009, we experienced a record crop and retail pricing was the most aggressive that it has been in years.” Increase demand by focusing on short season availability rather than price, suggests CCAB’s Becker. Scattaglia’s Parker agrees, but adds that price promotion can be effective. “One retailer displays cherries prominently for the first one to three weeks of the season,

and then puts them on ad when the volume Reader Service # 52

MAY 2010 • PRODUCE BUSINESS 89 M E R C H A Mangos Continue To N D I S Be A Growing Segment I N Understanding your stores demographic and educating both consumers and produce staff G alike prove to be necessary techniques to encourage sales in this popular and growing category. BY MEREDITH AUERBACH R E n much of the United States, mangos’ V share of produce sales hovers at less I than 1 percent. Paradoxically, they may E be one of the fastest growing categories E and the favorite fruit of Asian, Hispanic W Iand Latino populations. For retailers, that situation offers tremendous opportunity. How often does anyone get such an ideal environment for growth? Consider the mango and its strengths. With two seasons, multiple distinct varieties and cultivation in a number of countries, availability is year-round. About 60 million 9-lb. cases enter the United States each year, in addition to those cultivated One rule of thumb promoted by the National Mango Board is to never judge a within our borders. Mangos are a high-value mango’s ripeness by its color. fruit and have a good nutrition message, leaving plenty of room for new and experi- the Orlando, FL-based National Mango Board with Kent and Keitt, green varieties with enced consumers alike to increase con- (NMB), remarks, “We’ve spent the last couple consistent, sweet rich flavors and few fibers. sumption and purchase. of years looking closely at consumers and con- Instead, it’s the Tommy Atkins, with its As the peak of spring season approaches sumption patterns. We use a survey that moni- warm, red skin, extended almost yearlong — May through September — less overall tors a thousand consumers monthly. All of our season and long shelf-life, which dominates competition from other fruits translates to marketing efforts, from header cards to ad most U.S. retail displays. This could be due more promotional opportunities for mangos messages and the Web site to social media, to the fact that most Anglo consumers at retail. What’s more, there are a number of deal with ideas to help consumers use mangos equate the red color with ripeness and quali- merchandising techniques not yet widely easily with instruction on cutting and quick ty, as NMB research indicates. practiced that, if implemented, could spur usage ideas. We know most consumers love “Looking at variety choices from an growth and acceptance to consumers less the taste of mangos, but some are uncertain ethnic perspective offers retailers more familiar with the fruit. about using them at home. Support of retail information about how to match products “Along with all the positive attributes of sampling programs probably offers the most to customer preferences,” emphasizes mangos, we face plenty of challenges as direct way to help consumers.” On April 14, Larry Nienkerk, president and general well,” says Chris Ciruli, chief operating offi- mango importers and first handlers approved manager of Splendid Products LLC, head- cer at Ciruli Bros. LLC, based in Rio Rico, the continuation of The National Mango quartered in Burlingame, CA. “Asians seek AZ.“Toomanypeoplestillperceivemangos Board; 73 percent of the ballot received were firm, clean fruit, since in addition to eat- as an exotic fruit, and consumers are unsure in favor of continuing the program. ing mangos alone, they also use mangos of how to select and prepare them. As an in salads and other recipes. For them, industry, we have a big education job ahead VARITIES OFFER varieties such as Kent and Tommy Atkins of us to help people become more comfort- PLENTY OF CHOICES work well. Kent is a green variety with able with mangos. The creation of the Importers have their favorite varieties but some red blush. It mostly alternates peak National Mango Board has really increased these may be different than what most retail- availability with Tommys. Hispanic and our ability to tackle consumer issues such as ers display and sell. Most of the importers Latino populations are less concerned selection and cutting.” queried confessed to personal preferences with looks and more interested in Wendy McManus, director of marketing for for the yellow variety called Ataulfo, along ripeness, sweetness and absence of fibers,

90 PRODUCE BUSINESS • MAY 2010 Reader Service # 50 W M W M G D C N N H R R A E E E G S D C V N N H R R A E E E S V I I I I I I 92 RV CONSUMPTION DRIVE PROMOTION AND PRICING flesh.” firm color con- smooth intense with and great texture, best, and the flavor simply sistent are to “They According Ciruli, mangos. ship- Champagne its as trademarked ments even The has mid-July. company through peak mid-March Ataulfo’s is Mexico, season the in to Grown dedicated variety. the are of shipments percent company’s 95 about variety; yellow-skin better and more provide and varieties.” to ideas fruit us new to with look them customers “Our Super- Scarborough, ME. Hannaford in for headquartered floral markets, of and manager fruits category fresh varieties,” Sprague, two Nate offering reports started we after retailers preferences.” that their shoppers know to multiple signal labeled, well varieties con- of mango Displays savvy sumers. very them making Reader Service # 82 volume promotion. with for appropriate fruits pricing other and when many time a aren’t mangos at there of Guatamala mangos. and supplies Mexico promote good from to brings time May ideal Early an is Mayo RDC UIES•MY2010 MAY • BUSINESS PRODUCE iuiBohr scmitdt tuf,a Ataulfo, to committed is Brothers Ciruli substantially increased sales mango “Our h oua a oia fCnode Cinco of holiday May popular The hrssc steehl dct rdc tf n h osmr nthe on — consumers the and — staff mangos. produce of educate variety help these as such Charts a elydieslsadda epet the to people displays.” draw fruit and tropical approach sales This drive #10. really size two-for- can a at for 59¢-each mangos or yellow 99¢, promote about to hearing We’re plans accordingly. price retail- to allows ers which is available, there sizes is in and There variety available. out information to days supply willing 30 better Los more pricing in are to Growers Angeles, commit Los CA. of Angeles Co. Sales Tavilla president Vogel, of Bill notes mangos,” promote I ssc o-ikpro o ealr to retailers for period low-risk a such is “It STPPRIORITY TOP IS EDUCATION CONSUMER ne 14 o ag ri n as W are season.” “We this says, it and promote to fruit likely large for $1.49 under grow.” to Midwest it encourage the can we in believe pound happen and any- and to “each” starting packs the pricing multiple by see sold We are varieties.more. and fruits sizes few different the Very drive by to mangos pound sell also “to He retailers, target. encourages price consumer important o octamnoas ep store-level helps also mango a demonstrating cut videos to site how Web NMB’s the to consumers Directing individual detail educational characteristics. to the variety offers of Board use the make material to and color by they mangos.” what more sell have to they need sure results,” with make work to research will retailers “We trade continues. McManus con- and and support sumer ship- sampling copy, reports, messages, ping mer- ad mango including better chants, become them help results. follow. financial will success for more do way, can the That it of what value and mango the fruit real demonstrate become to to enthusiasts retailers region innovative every thor- industry. some in most are the need the in we of sites What one easy-to-use is and it ough believe all and avail- have, tools able all we and programs post reports merchandising We shipping the site. and the crop on the areas hidden There no consumers. are infor- for and the needed importers get base retailers, to knowledge location and central mation NMB’s our a made to site “We’ve Web according asserts, who needed, McManus, is what pau oe al pi rcn as pricing April early notes Sprague an as $1 to points and concurs Nienkerk cau die ealr ontjudge not to retailers advises McManus to incentives offer we retailers, “For be to continues education Consumer

Photo courtesy of National Mango Board Reader Service # 7 W M W M G D C N N H R R A E E E G S D C V N N H R R A E E E S V I I I I I I

94 Reader Service #83 Reader Service #80 Reader Service #13 RDC UIES•MY2010 MAY • BUSINESS PRODUCE VROIGOBSTACLES OVERCOMING n rvddnee information. needed shoppers provided with and interact managers produce J atog ul iefuthnlsi bet- it handles fruit ripe Hill, fully Mullica “although in NJ, headquartered Net- LLC, Produce Amazon work for manager partner sales Golden, and Greg contends mangos,” that ensure help refrigeration.” of to out 60º stay above to tem- mangos kept 55 room be of back peratures to recommend we has issue, but fruit 40ºF, the the clarifies say fruit. 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TO GATEWAY CUTS: FRESH to drawn be will fruit.” consumers the new promote a that is will and there retailers mangos, likelihood smaller of greater If lot and a size. Seasons are and there luxury. quality a determine as weather still mangos consumers of “Many think Inc. FL-based Farm Miami, M&M for business director differ- Rosen, development Lloyd purchase admits and mangos,” use ent will who identify dif- in and sourcing and countries.” ebbs ferent varieties “the crops, to of pricing flows and supplies in we but yet.” would retail, there aren’t at pricing just picture contract mango offer the to improve way a Develop- to pricing. ing out FOB turned impacting but smaller, large, be be ini- to was “For projected year adds. tially this he crop too,” Mexican difference, the example, weath- big and a Sizing make to advance. er in willing far aren’t eight so growers to commit six Most prices out. quote weeks to countries of difficult various nature it from the makes arriving but crop pricing, steady the see would to “Retailers like help obstacle: major to points another box Golden out the quality.” handling on maintain print warnings retailers We chill fruit. and ripe tips less than ter ugn ult ntrso lvradmatu- and flavor says. he of rity,” terms in in experts quality true fruit the judging cut are processors with day, dealing every are business. his they for “Because good be to mangos fresh-cut fresh-cut. or and whole their it fruit meet be of that needs, forms products to other consumers of direct aware be managers to stand-alone produce need a store-level new as More getting mangos fruit. in try link to mangos missing consumers of the sector be fresh-cut might path The mango’s the success. in to boulder per- biggest is the preparation haps and cutting of knowledge motn ato h nutynwadin and now industry an future.” the is the fresh-cut of that part agree tends important still example, I for smaller. it pick, be as to first Fruit maturity The yield. and in. best size comes both the in get widely to varies is fruit higher count large also or on “Processors 12 notes. of he of level important,” measure Brix a a “As sweetness, quality. root a inconsistent the as of and sourcing processors regional with to problems challenge to Ciruli points of Bros. Ciruli evaluation. processor of mate Aogwt ealr,w tl edto need still we retailers, with “Along variations attributes Nienkerk Splendid’s mznsGle ugstegot of growth the judges Golden Amazon’s consumer of lack of obstacle sales The o vroeare ihGle’ esti- Golden’s with agrees everyone Not pb A 00•POUEBUSINESS PRODUCE • 2010 MAY 95 Reader Service #36 M E R C H A 10 Sweet Ways To Sell More N D I S Stone Fruit Year-Round I N Flavor is paramount to future growth of the category. G BY CAROL BAREUTHER, RD R E V ree ripe. Pre-conditioning. Vari- I etal advancements. Branding. E The stone fruit category has E undergone many developments W in the past few decades and it Thas all been based on the goal of providing customers with the Holy Grail of flavor. Jeff Fairchild, director of produce for New Seasons Market, a 9-store chain based in Portland, OR, asserts, “Flavor is the main driver in stone fruit sales.” Steve Kenfield, vice president of marketing and business development for The HMC Group Marketing Inc., in Kingsburg, CA explains, “Successfully merchandising stone fruit is so much more than just a process, variety or merchandising scheme. The critical element is that the fruit eats well whether it’s June or January.” Photo courtesy of Kingsburg Orchards Kingsburg Orchards has found success with its Dinosaur brand, which includes 1. KNOW THE TRENDS four colors of pluots that run from May to September. More than 600 varieties of fresh market peaches, nectarines and plums are grown in cent yellow-flesh and 13.1 percent white- classic peach varieties such as the Rio Oso California alone, the U.S.’s largest producing flesh. In addition, these retailers’ nectarine Gem, Fay Elberta and Zee Lady next to new stone fruit state. Gordon Smith, director of share of tree fruit dollars was 39.4 percent, varieties like Elegant Lady, currently a marketing for the Reedley, CA-based Califor- made up of 83.5 percent yellow-flesh and leader in the category, and then brought nia Tree Fruit Agreement (CTFA), remarks, 16.5 percent white-flesh. retailers in on a orchard sampling tour. The “Growers are always looking for new vari- “In peaches and nectarines, varietal result? “New varieties brought to full maturi- eties that eat great to add to their mix.” development continues at breakneck ty matched the flavor expectations of the On the import side, Tom Tjerandsen, speed,” says Don Goforth, director of mar- older varieties,” reports Parker. marketing manager for the Chilean Fresh keting for Family Tree Farms Marketing There is a push toward lower acid, white- Fruit Association (CFFA), based in Sonoma, LLC, in Reedley, CA. “As an industry, we’re flesh varieties, reports Goforth. “However, CA, says, “Chile continues to plant new vari- seeing bigger, sweeter varieties come in.” too low acid and consumers balk. They still eties and new acreage.” “There are lingering misconceptions,” want their fruit to taste like a peach or nec- Peaches and nectarines represent the admits Dave Parker, director of marketing tarine,” he explains. “New white-flesh vari- bulk of tree fruit category dollar sales. for Scattaglia Growers & Shippers LLC, eties are coming out with better color, high- According to Best Practice research commis- headquartered in Traver, CA. “Some believe er sugar and better sizing.” sioned by the CTFA, conducted from May to that new varieties are not as good as the Phil Neary, director of operations and October 2009, and analyzed by Encore Asso- ones that originated 20 years ago.” Parker grower relations for Sunny Valley Interna- ciates, in San Ramon, CA, Best of Class explains that this perception was put to the tional Inc., based in Glassboro, NJ, agrees (BOC) retailers’ peach share of tree fruit dol- test not long ago when researchers at the andadds,“Smallfruitisundesirablein lars was 55 percent, comprised of 86.9 per- University of California at Davis planted white-fleshed varieties. Big fruit is what

96 PRODUCE BUSINESS • MAY 2010 total dollar sales by BOC retailers. In addition, optimizing plum sales from January to April means offering core red and black varieties, which equal the majority of sales, and also expanding the offerings to include yellow varieties and pluots. Dan Spain, vice president of sales and marketing for Kingsburg Orchards, in Kings- burg, CA, contends that plums are falling out of favor to pluots. “There are a lot of old varieties of plums with no flavor and some farmers are selling off these trees,” he says. “We’re working with 80 to 100 varieties of pluots, red, black and mottled varieties that span from May to October. The emphasis on flavor is evident in names such as Flavorosa, Tropical Treat and Flavor Grenade. We’ve been aggressively planting yellow/green varieties so that retailers will be able to offer all four colors all season long.” Likewise, Family Tree Farms is another company that’s developing unique pluot varieties. “There’s the Eagle Egg, which has a dark skin and red flesh with a raspberry flavor,” details Goforth. “The Plumogranate retailers look for and this is one reason that the two is decreasing and creating less of a is high in sugar and has four times the makes them priced at a premium.” barrier to purchase for cash-strapped con- amount of antioxidants as a pomegranate, “The availability of white-fleshed peach- sumers,” remarks Parker. and the Amigo, which has amber flesh and a es and nectarines during the summer and According to the CTFA’s Best Practices, tropical flavor.” winter means the price differential between plums represent 20.7 percent of tree fruit Specialty stone fruit varieties like apri- Reader Service # 31

MAY 2010 • PRODUCE BUSINESS 97 M “The right mix depends ondary display. Four-inch plastic casters on E on who the customer is and the bottom of the unit make it easy to roll who the retailer wants to into place. R be,” adds Family Tree C Farm’s Goforth. 4. CONSIDER ORGANIC H Organic production makes up approxi- 3. DON’T PLAY mately 3 percent of California’s fresh mar- A THE NAME GAME ket production of stone fruit, according to N WITH EVERY CTFA’s Smith. “Production has been stable VARIETY over the past few seasons,” he adds. “The D D “The sheer number of consensus is that organic production of I stone fruit varieties makes peaches, plums and nectarines will remain S it difficult to get con- stable to match this niche market demand, sumers to learn and look in spite of changing consumption patterns I for each one,” says New during this economic downturn.” N Seasons’ Fairchild. “Add to Denver Schutz, technical services man- Photo courtesy of Kingsburg Orchards this that each variety is ager for Gerawan Farming Inc., in Sanger, G ums (apricot-plum), peacherines (peach- available for only about 10 days. That’s CA, admits, “Price is still a factor for con- nectarine) and cherums (cherry-plum) are pretty bewildering.” sumers when they are purchasing any R expanding category offerings. Spain says, “One exception,” asserts Scattaglia’s organic item. The organic stone fruit market “We’ll have 10 to 15 new items this year. The Parker, “is if you have an outstanding vari- is slowly growing.” E idea is to provide retailers with something ety with enough sustained volume to fea- “This organic growth trend in stone fruit V new and different to offer their customers.” ture for a solid three to four weeks. We run is largely attributed to the availability of promotions like this with retailers for our fruit, which creates a lower average price- I 2. PROFIT FROM O’Henry peaches.” per-pound,” reasons Mierau. E THE RIGHT MIX Growers are bridging this gap between W In this land of stone fruit plenty, what’s specific and generic names by grouping sim- 5. MAKE SURE FRUIT the optimal mix of fruit to offer in order to ilar varieties of stone fruit into branded fam- IS FLAVORFUL reap maximum profits? Peaches should ide- ilies. “One of our biggest successes last year Consistent flavor is what Jose Manzano, ally represent 50 percent of the category, was with the Dinosaur brand,” details Kings- produce director at the 3-unit Dayton, OH- nectarines 30 percent and plums 20 percent, burg’s Spain. “It consists of four colors or fla- based Dorothy Lane Markets, looks for in according to the CTFA’s Best Practices. This vors of pluots with a number of different stone fruit. “We only sell domestic tree research also showed that BOC retailers had varieties within each color that spans from fruit,” he says. “The quality of imports from higher shares of white peaches and nec- May to September. The marketing strategy Chile isn’t consistent enough, even though tarines and higher shares of plums, suggest- then becomes to carry a family of we’ve tried so many different brands. Even ing that greater variety sells more produce. Dinosaurs.” The company offers a high- in the same brand, you can get a box where CTFA’s Gordon points out, “Consumer graphic branded unit, or nest, that can be the fruit is fantastic and another box right research indicates that for tree fruit, what used to merchandise three to five cases of next to it on the same truck where the fruit tastes good to one consumer does not neces- fruit as part of a primary, island or sec- tastes like cardboard. There tends to be bet- sarily hold true for another. Some con- ter consistency in the summer.” sumers like it soft and juicy, while others, HMC’s Kenfield says, “I feel strongly that even in the same family, like it firm and “We change the offering customers the right product is more crunchy. White-flesh peaches and nec- important than offering it year-round. tarines appeal to those consumers who want Brix sign daily There’s a natural seasonality to the category an extra sweet piece of fruit. Plums, while and provide an and this isn’t a bad thing.” slightly smaller than peaches and nec- “Ripeness is extremely important,” tarines, are often well suited to children’s explanation with it agrees John Thiesen, operations manager of smaller hands. One size certainly does not of what Brix means. Giumarra Bros Fruit Co. Inc., headquartered fit all, which is why it’s critical for retailers in Los Angeles, CA. to offer the full portfolio of stone fruit.” It’s something that “Ripeness at harvest, not at retail, is the Sheri Mierau, vice president of sales and critical issue,” says Schutz. “Fruit must be marketing for Dinuba, CA-based Fruit Patch draws customers picked at optimum maturity in order to Sales LLC, notes, “During the domestic into the store deliver the best eating experience possible. stone fruit season, retailers should take If fruit is not picked at a high enough level advantage of the bountiful availability. For daily during the of maturity, it will never deliver what the the off-season, and due to logistic reasons, peak of the customerwantsnomatterwhatisdonein scale back the selection to core items such an attempt to ripen it after harvest. To avoid as yellow-flesh nectarines and peaches, summer season.” overripe and under-ripe, retailers should plums and pluots.” buy from growers that do eight to 10 harvest “Stone fruit is following the apple and repetitions per tree. It’s more expensive for — Jose Manzano tomato category model in that retailers are the grower to harvest this way, but in the Dorothy Lane Markets now able to offer their customers a unique long run it’s cheaper, since there will be less selection,” points out Spain. shrink on the store shelves.”

98 PRODUCE BUSINESS • MAY 2010 Schutz adds, “By offering consistent fruit season nearly doubled their sales. The key is every time, the retailer will sell more fruit “Promote multiple to PLU price the product rather than use a and get repeat buys. Consistent ripeness UPC so customers see, for example, $2.99 and eating quality throughout the entire items. For example, per-pound and not a $7 price tag.” season are very important for overall sales running a plum A few peach growers in South Carolina and repeat business.” have expanded into 1- to 3-lb. clamshell Fruit Patch’s Mierau adds, “Consumers promotion along packs, says Martin Eubanks, director of mar- want a range of ripeness so they can pur- with a peach ad can keting for the Columbia-based South Caroli- chase fruit that can be eaten immediately na Department of Agriculture. “Some will and some that can be consumed later.” quadruple sales put a recipe for peach cobbler on the pack.” Brix is a specification that Manzano uses to measure the quality and flavor of his dollars when 8. USE SAVVY stores’ peaches. “Each produce manager has compared to the DISPLAY STRATEGIES a refractometer to measure Brix levels,” In the winter, Jungle Jim’s International Manzano reveals. “In addition, produce staff peach ad alone.” Market Inc., a single specialty store in Fair- selectively sample incoming fruit to deter- field, OH, stocks peaches, nectarines and mine its sweetness.” threetofourvarietiesofplumsforcus- Dorothy Lane also uses Brix levels as a — Gordon Smith tomers. Come summer, display size in the 1- merchandising tool. Signage informs cus- California Tree Fruit acre produce department increases to tomers what peaches Brix on a particular include more than 30 to 40 feet of peaches Agreement day. Manzano details, “We change the Brix sold by the basketful and more than 10 feet sign daily and provide an explanation with of nectarines and other stone fruit. “We offer it of what Brix means. It’s something that a full assortment,” says Dave Brossart, direc- draws customers into the store daily during 7. OFFER A VARIETY tor of produce and floral. “That means the peak of the summer season.” OF PACK STYLES everything from yellow-fleshed peaches and “From a grower’s viewpoint,” says Ger- Most stone fruit is merchandised in loose nectarines to white-fleshed peaches and awan’s Schutz, “Brix is of limited value. Fla- bulk displays. Mierau reports, “We have nectarines, flat peaches and nectarines, four vor sells and sugar is only one component seen retailers ask for less packaged product or more varieties of plums, that many or of flavor. While most people can agree on because consumers enjoy selecting their more pluots, apricots, you name it.” He what constitutes high or low Brix, there is a ownpiecesoffruit.Inaddition,asretailers adds, “All of our produce associates have a significant range in between represented by adopt eco-friendly initiatives, they are seek- knife. They sample to the customers right fruit that tastes great. One should not focus ing less packaging from vendors.” there on the floor. That’s what really sells on Brix levels or even sugar-to-acid ratios. The single-layer Euro box is the greatest the fruit.” Sugar, acid, aroma, texture, appearance and invention the stone fruit industry has seen Stone fruit has always been the opener of a number of other constituents all combine in the past ten years, maintains Gerawan’s summer, says Mierau. “For this reason, set to deliver flavor and it is the overall flavor Schutz. He explains, “It has far better air- large displays.” and eating experience that is important.” flow, which allows heat to escape, and it A 1 percent increase in display space can looks great on the store display. It’s also the translate into a 19 percent increase in sales, 6. HANDLE CORRECTLY sustainable choice since there is less pack- according to recent merchandising research At both the distribution center and store aging per pound of fruit, when compared to by the CTFA. In addition, placement of tree level, Gerawan’s Schutz recommends, the old two-layer shoebox. Most of our cus- fruit next to three complementary fruits — “Stone fruit that is already mature must be tomers have switched to this box.” melons, berries and grapes — generates the stored in a high humidity environment Yet, Sunny Valley International’s Neary greatest sales increase, in particular for between 32 and 35˚F until being placed in says, “We’ve found success in the last year peaches and nectarines. Plums exhibited the an unrefrigerated display, which continues in offering whatever packaging a retailer largest sales increase when retailers used the ripening process and creates a great would like to use as a point of differentia- POS material that provided selection tips for aroma in the produce department. Stone tion. This includes value-added tray packs plums, as past consumer surveys have indi- fruit should never be stored in the ‘killing of white peaches, 4-, 5- and 6-lb. boxes, bags cated that consumers are the least comfort- zone,’ which is between 36 and 50˚F. Killing and random weight totes. Many retailers able when selecting plums. zone temperatures will cause off-flavors and especially like the totes; they believe it Signage is key to selling less familiar mealiness in the fruit.” helps them compete with farmers’ markets varieties such as pluots, maintains Family The CTFA suggests rotating product to in the summer. Our totes are high-graphic Tree Farm’s Goforth. “Name and price stage the ripest fruit first, handling cartons and we can ID them with the state, New won’t do it,” he says. “Instead, list bullet gently to avoid bruising and storing stone Jersey or South Carolina, for example, to points. For example, ‘Sweet,’ ‘Twice the Brix fruit with non-ethylene-producing products help capture customers looking for locally of a plum,’ ‘Double the antioxidants.’ Tell such as strawberries and apples. grown options.” the story.” Amy London, executive director of the New this season, Family Tree Farms is Restock and rotate the display, advises Columbia-based South Carolina Peach Coun- offering its stone fruit packed in a biodegrad- Gerawan’s Schutz. “Fruit should not be cil, advises, “Stack fruit on the display by able cardboard tote. Each tote holds approxi- stacked more than two layers deep as this 1 hand to avoid bruising the fruit.” mately 2 ⁄2 pounds of fruit and is PLU-stick- could damage fruit on the bottom layers,” he “Restock and rotate stone fruit regularly,” ered on the handle. Twelve totes are shipped warns. “Fruit firmness should be monitored says Fruit Patch’s Mierau, “in addition to in a display-ready Euro box. Goforth says, regularly so riper fruit can be placed on top keeping a clean display.” “Retailers who test marketed this tote last and toward the front.”

MAY 2010 • PRODUCE BUSINESS 99 M E R “Fruit should not be C stacked more than H two layers deep as A this could damage N fruit on the bottom D layers. Fruit firmness I should be monitored S regularly so riper I N fruit can be placed G on top and toward the front.” R — Denver Schutz E Stone fruit displays are perfect candidates for color breaks. Taking advantage of Gerawan Farming Inc. V the various colors and varieties available is sure to catch consumers’ attention. I E Day in May. “In the winter, 60 percent of highest ad frequency in July and August. W Color breaks are important to catch the the department is vegetables, while 40 per- “However,” says Gordon of CTFA, “cate- consumer’s interest, adds Fruit Patch’s cent is fruit,” reports Fairchild. “However, in gory volume and dollar lift can be as much Mierau, who suggests, “Take advantage of the summer, those numbers will flip-flop. as five times greater than the season aver- the multiple colors of stone fruit and use This promotion forces the stores to reset for age when a retailer promotes both early the different plum colors to create an eye- summer before the competition. Also, grow- and late in the season. While tree fruit and catching display.” ers in California know there’s money in the Fourth of July are nearly inseparable, Use of secondary displays and cross-mer- early-season fruit that eats well. Ultimately, there are huge opportunities to provide con- chandising can boost sales volume. This sea- we see more movement in the category all sumers with excellent eating experiences son, South Carolina’s Peach Council will season long by starting early.” with tree fruit before Memorial Day and offer a recipe brochure for use as POS in dis- Fairchild adds that he follows up with after Labor Day. In addition, promote mul- plays. The four recipes, which include a clas- Northwest locally grown stone fruit promo- tiple items. For example, running a plum sic Peach Cobbler, Peach and Thyme Salad tions starting the second week in July and promotion along with a peach ad can with Blueberries and Fresh Ginger, Barbe- will run a Plum-a-rama with 10 to 12 vari- quadruple sales dollars when compared to cued Ribs with a Peach Sauce and Peach Gaz- eties on display the second week in August. the peach ad alone.” pacho. call for many produce items. Peach Party is the theme of a now eight- During the winter, says Tjerandsen of year-old promotion run throughout the CFFA,“Mixuppromotionaltypessuchas 9. EDUCATE CUSTOMERS month of July at Dorothy Lane Markets. main features, sub features in store or AND STAFF “We wait until we can get peaches that Brix theme events to continuously surprise Knowledge is buying and selling power. very high,” says Manzano. “The promotion the customer.” Many retailers have utilized CTFA’s Down- has created quite a customer following.” Fruit Patch’s Mierau contends there are load Center to obtain and customize POS South Carolina peaches that are full of advantages to promoting locally grown materials. Recipes, photos and ad slicks are fuzz and still have green leaves clinging to stone fruit. “We encourage retailers to edu- available for direct download right to their the stems are the focus of an annual promo- cate consumers regarding stone fruit from own marketing department, says Smith. tion at Jungle Jim’s. “We call them Bathtub California because 93 percent of nectarines To educate produce staff, growers such as peaches and put that on the signage to let and plums and 76 percent of peaches are Fruit Patch host educational/training pro- customers know how sweet and juicy they grown in the Central Valley during the grams and sponsor tours of the growing and are,” says Brossart. “We have 10 to 15 cus- summer season.” packing facilities. “We also utilize scan data tomers filling their bags with peaches all On the East Coast, Sunny Valley’s to monitor success and share the data analy- day long.” Neary says, “Many retailers like to source sis with our retail partners for future plan- According to the CTFA’s Best Practice and promote locally grown peaches from ning, says Mierau. research, BOC retailers actively promote South Carolina and New Jersey. For exam- peaches, nectarines and plums using high ple, they’ll carry a California yellow 10. PROMOTE TIRELESSLY everyday prices and aggressive/low promo- fleshed peach and sell it for $1.99-per- Stone fruit promotions abound in both tional pricing with a 40 to 45 percent spread pound and then promote Eastern yellow winter and summertime. For example, New between the two. These retailers also pro- fleshed peaches for 99 cents-per-pound by Season’s Market runs its First Taste of Sum- mote through the entire season, but save passing on the freight savings as a value mer promotion the week prior to Memorial the biggest events and promote with the for their customer.” pb

100 PRODUCE BUSINESS • MAY 2010 TURN YOUR MARKETING INTO AN AWARDING EXPERIENCE

Right now, and on through June 4, 2010, we’re taking entries for the 22nd Annual Marketing Excellence Awards Program, presented by PRODUCE BUSINESS. The awards recognize excellence in marketing in each of five categories: retailers, restaurants, wholesalers, shippers and commodity organizations. Print, broadcast and other media are eligible to win.

To participate, send us the following:

1. Your name, company, address and phone.

2. Type of business.

3. Names and dates of promotion (must have taken place between June 1, 2009 and June 1, 2010).

4. Promotion objectives.

5. Description of promotion. 2009 MARKETING EXCELLENCE AWARD WINNERS 6. Promotion results (sales or traffic increases, media attention). What made this program a success? • California Giant Berry Farms • California Table Grape Commission 7. All support materials used in the promotion – such • Chilean Avocado Importers Association as POP, ads, posters, TV commercials. • Chiquita/Fresh Express • Coast Produce Co. Inc. High-resolution photos to illustrate the promotion are encouraged. (Please do not send any produce) • Eurofresh Farms • Giumarra Bros. Fruit Co. Inc. • Idaho Potato Commission • National Mango Board • New York Apple Association SEND ENTRIES TO: • Network For A Healthy California • Ontario Apple Growers PRODUCE BUSINESS MARKETING • Produce For Kids EXCELLENCE AWARDS • Riveridge Produce Marketing Inc. P.O. Box 810425 • Boca Raton, FL 33481-0425 • Sambrailo Packaging • Tanimura & Antle Inc. Deadline for entries is June 4, 2010 • University of Massachusetts For additional information, call: 561-994-1118, Ext. 101 Reader Service #69 Reader Service #61 Reader Service #66 Reader Service #21 Reader Service #92

102 PRODUCE BUSINESS • MAY 2010 Reader Service #64 Reader Service #63 Reader Service #87 Reader Service #41 Reader Service #55

MAY 2010 • PRODUCE BUSINESS 103 D R I E D How Packaging Boosts Sales F R U I In Dried Fruit And Nuts T Dried fruit and nut packaging meets the needs of different produce & departments by catering to the needs of their different patrons.

N BY TRISHA J. WOOLDRIDGE U T S he first purchase of dried fruit or nuts in the produce section is usually an impulse buy. While excellent quality brings customers back for more, the pack- Taging is what pushes that initial sale. When done correctly, a well packaged product will attend to a wide array of needs among consumers — and the retailers that sell to them. “Packaging needs to be flexible,” says Miranda Ackerman, brand manager for Mar- iani Nut Co., headquartered in Winters, CA. “You need to be able to merchandise it in many different ways: shelves, j-hooks, clips... Ideally, packaging should make for the ultimate flexibility of having fruits and nuts in the department.” Clamshell packages are extremely portable and appeal to on-the-go consumers. Brent Tackett, national sales manager of branded products for Traverse City, MI’s Another advantage to the stand-up, gus- Depending on the sturdiness and seal, Cherry Central Cooperative Inc., adds, seted bags is that they are resealable, practi- these packages can also be extremely “Another important thing to consider is the cally made for on-the-go snacking. The con- portable, especially for larger family or customer who is buying from the stores. tinually rushed consumer can easily snack group outings, such as picnics, holidays and Many club stores service commercial patrons, and reseal the bags to prevent messes and sporting events. Sizes vary from party-size to who have different needs than individual con- keep the product fresh. This package serves a smaller servings that could fit in a desk sumers. There are also different consumers wide demographic, including parents’ wanti- drawer or a vehicle console. who all shop differently. You’ve got single par- ng snacks for themselves and their children, Stephanie Blackwell, owner of Aurora ents, standard families, big families, patrons concerned with eating healthfully in Products Inc., further describes this kind of seniors...they all shop differently, and stores their busy lifestyle, outdoor aficionados, packaging provided by her Stratford, CT- must have something to fit all of them.” sports lovers and family picnickers. based company, “The sturdy tubs are large and are geared toward the whole family. STAND-UP, GUSSETED, CLEAR PLASTIC, They generally offer 10-12 servings. They RESEALABLE BAGS RIGID CONTAINERS are clear, stackable and can be reused in the These are vertical bags that can stand on The other popular style of packaging is a kitchen for food storage.” their own or be used on clip-strips; they clear, rigid package, made of PET [polyethyl- An extra positive point to this kind of often include holes for j-racks and have the ene terephthalate] or a similar plastic, which packaging is a higher perception of fresh- best longevity of all the packages. While can be resealed and offers full visibility of ness, which can appeal to different regional there are usually windows to show the prod- theproduct.Someofthesepackagesare or store-specific demographics. Joe Burnett, uct, most of these packages are opaque or clamshells, while others have detachable produce director of Associated Grocers Inc., have a metallic sheen that protects the prod- and resealable lids. These packages can based in Baton Rouge, LA, finds more uct from light degradation. even be recyclable or reusable. demand for the clamshell or rigid contain-

104 PRODUCE BUSINESS • MAY 2010 Reader Service # 57 D ers. “It looks like it was packaged in the however, some servings can be bigger. Addi- R store, and it creates a new price point. My tionally, multi-serve bags of six to eight “Customers like clear patrons are not so much on the go, so dried ounces are popular for items, such as mixed I fruit and nuts are not something they’d buy whole fruits, which don’t lend themselves to labeling, due to the E simply because it’s in a resealable bag.” smaller sizes.” prevalence of dieting D OTHER SPECIFICS PACKAGING THE MESSAGE and the need to keep Besides the two major players of stand- Part of dried fruit and nut packaging is how in shape. I believe F up, gusseted bags and clear PET-like packag- well it can communicate to customers. While ing, there are several other packages that many private labels prefer little more than the they also prefer clear R R cater to specific demographics. Sun-Maid required nutritional and ingredient informa- U Growers of California, for example, revolution, companies that allow the product to packaging to allow 1 I tionized dried fruit packaging with its ⁄2-oz. speak for itself through clear plastic amplify them to see the 6-packs. Joe Tamble, vice president of sales the information presented on its labels. This T for the Kingsburg, CA-based company, says, draws in those consumers who are concerned product they are “It’s our most popular product. Good for about their health and product origin. buying.” back-packs, on-the-go, or a bowl of cereal.” Mariani notes three goals when the com- & Andrew Stillman, president of Amport pany came up with its newest line of flavored Foods/American Importing Co., in Minneapo- nuts: “Taste, of course, convenience and — Stephanie Blackwell Aurora Products Inc. N lis, MN, says that many stores request just a health,” he specifies. “With the latter two, the clear bag with the most basic ingredient list packaging is key. The stand-up, gusseted bag U and nutritional information. “These stores provides convenience, and nutritional infor- T don’t want a printed bag,” he points out. mation is on the package. Additionally, we A PLACE OF THEIR OWN “They want a lay down, non-gusseted bag that wanted it to grab customer attention, which In many cases, having a combination of S grocers can put their own label on so they can is why we chose photography of almonds in packaging for multiple demographics and give it a private label look. It gives it a more the bloom period. It’s visually appealing and creating a place for dried fruit and nuts to produce feel, but still has the zipper lock.” shows that it’s fresh and natural.” What’s stand out makes a big difference. In fact, the In-shell peanuts have a packaging set-up more, the fact that these are domestic and stores that show the most sales in dried fruit all their own; after all, each peanut comes local is also prominent: it’s part of the name and nuts have a dedicated sub-section for in its own biodegradable “package” of a California Almonds. these products in produce that includes more shell. “They are easily carried, and fit in a “Customers like clear labeling, due to the than one kind of packaging to appeal to a backpack for riding, hunting, hiking, sports prevalence of dieting and the need to keep wide demographic of potential consumers. and other outdoor activities,” says Betsy in shape,” says Aurora’s Blackwell. “I believe “If you go with a rigid container, also Owens, executive director for the Virginia- they also prefer clear packaging to allow stock the display with flexible packaging to Carolina Peanut Promotions, based in them to see the product they are buying. appeal to both demographics,” suggests Nashville, NC. Some stores carry peanuts in Aurora generally has two labels. The front Amport’s Stillman. “Both styles [rigid and bulk, but most stores package them in larg- label includes the name of the item and the flexible] are successful, and if you build a er, lay-down bags of eight, 12, or 14 ounces, weight. The back label includes UPCs, nutri- great section, you draw even more attention and some places even have smaller 4-oz. tional facts, country of origin information, to the products.” packages for grab-and-go customers. ingredients, kosher and organic symbols — Rodney Borden, director of produce and Size is also an important consideration, when applicable — and allergy info.” floral for Festival Foods, owned by Knowl- regardless of the type of packaging. Tackett Mary Mooney, general partner at Chico, an’s Super Markets Inc., with headquarters of Cherry Central Cooperative explains that CA-based Mooney Farms, describes what in Vadnais Heights, CA, agrees with stocking while the earnings-per-pallet are less for went into a recent package redesign for the more than one kind of packaging. “Stand-up smaller packages, more product overall is company’s julienne-cut, flavored sun-dried gusseted packaging has a nice presentation, purchased, so stores see higher earnings. tomatoes. Besides optimal on-the-go snack- but the clamshell-like packaging also looks When creating its new line of flavored ing with gusseted bags, the packaging com- good,” he remarks. “Each has a different California almonds, size was an important municates a lot of information. It informs demographic. The clamshell looks higher factor for Mariani Nut Co., as president, customers of significant health benefits and end, but the gusseted bag looks bigger.” Fes- Matthew Mariani, describes. This new line that it is local. Just as important, it conveys tival Foods has its own category where it has resealable 6-oz packages. “They are a the feeling of snacking, through the colors sells both bulk and packaged dried fruit and good serving size and a reasonable price and the descriptions of flavorings. “You sell nuts, which works very well for them. point,” he describes. “It holds three to four more product where the consumer under- “There’s an advantage to carrying both.” snack servings. It’s not a single-serve pack- stands it as a snack,” she explains. Many stores also use racks provided by age, but a good value size.” Asmar echoes the importance of packag- the different dried fruit and nut companies Jane Asmar, vice president of sales for ing the idea of "snack," especially for the according to Burnett of Associate Grocers. National Raisin Company, based in in younger demographic. “We are now market- “Stores often used side-stackers to draw Fowler CA, points out that while dried fruit, ing our new “Raisels” line of sour flavored more attention to the products because they trail mix and nut products appeal to a wide raisins, fruit-based characters such as Sour can get lost on the shelf.” To add to that demographic, there is a common element of Orange Burst, Sour Apple TKO, Sour Peach attention, Burnett includes that Associate health interest. “Generally, consumers pur- Pucker and Sour Lemon Blast that are a fun Grocers runs advertising every six to eight chase portion-control items such as multi- and whimsical way to convey our new and weeksjusttopromotetheitemsevenat pack SKUs that contain 1 to 1½ ounces, exciting product line to the consumer.” their regular prices. pb

106 PRODUCE BUSINESS • MAY 2010 FLORAL WATCH INTERNATIONAL FLORICULTURE EXPO JUNE 22-25, 2010 MIAMI BEACH CONVENTION CENTER MIAMI, FLORIDA Produced by Diversified Business Communication of Portland, ME, the International Floriculture Expo (formerly The Super Floral Show) includes grower tours, educational programs and a three-day exhibition. See www.floriexpo.com for more details. AISLE-BY-AISLE BOOTH REVIEW Booth 524 Booth 534 Booth 613 Booth 624 Micky’s Minis Flora Express Baero North America Inc. FreshBlooms The Hiawatha Corp. Millstadt, IL St. Louis, MO Sewell, NJ Shelton, WA Micky’s Minis offers a unique line of miniature Besides the flow- FreshBlooms is a sales and marketing compa- The Hiawatha Corp. is potted plants and seasonal accessories. Cur- ers themselves, ny dedicated to servicing the floral needs of a distributor of fresh Western greens, Christ- rently, we offer 14 different types of plants. nothing is more important to the success of its mass-market customers. Drawing on our mas greens and green moss products to the Everyday and seasonal plants, matched with floral sales than quality lighting. Although that parent company, Delaware Valley Floral wholesale florist industry, craft store industry complementary acces- fact is frequently overlooked, nothing sets Group’s floral history of importing, sales and and mass market merchandisers. We provide sories. Micky’s Minis your floral displays apart from the competi- distribution, we are able to offer a wide range high quality, competitively priced, mountain- has been going strong tion like great lighting. BAERO provides selection of flowers, fresh, evergreen products that lead the indus- for 20 years. perfect retail lighting for florists of all sizes. botanicals and floral try in customer satisfaction. hard goods.

Booth 625 Booth 633 Booth 725 Booth 731 DecoWraps Teufel Holly Farms Hosa International Alpha Botanical Inc. Miami, FL Portland, OR Miami, FL Homestead, FL Deco Wraps has become a leading supplier In business since 1890, we are a wholesale Hosa International will showcase a variety of You won’t find a finer mix of distinctive packaging options for fresh grower of English Holly and producer of the new and exciting floral of grade “A” interior foliage. With spacing 1 flowers and potted plants. We offer prompt most diverse line of fresh wreaths, garlands, selections, which will feature guidelines 1 2⁄ times the industry standard, our service, simplified logistics and competitive swags, centerpieces, bouquets and specialty our extraordinary spray finished product is exceptional. Add together pricing. We create products that are always products made from Evergreens that we har- roses, lilies and roses from the mix of quality plants we offer and out- fresh and vest in the Pacific Northwest. Come help us our 200-hectare Rainforest standing customer service to see why we are innovative. celebrate our 120th anniversary! Alliance-certified farms in capable of satisfying any discerning promo- Colombia and Ecuador. tional buyer.

Booth 732 Booth 803 Booth 834 Booth 901 Harster Greenhouses Inc. The USA Scientific Certification burton + BURTON Dundas, Ontario, Canada Bouquet Co. Systems Bogart, GA Harster Greenhouses Inc. is your earth-friend- Miami, FL Emeryville, CA Visit burton + BURTON ly choice for flowering plants. All of our prod- We are a national manufacturer and distribu- VeriFlora is an agricultural sustainability certi- to see what’s new for Spring 2011. For over ucts are 100 percent pesti- tor of fresh-cut flower bouquets and arrange- fication and eco-labeling program recognized 28 years, burton + BURTON has been a lead- cide-free. We grow high quali- ments and we offer other floral-related prod- as the gold-standard in the floriculture and ing supplier of balloons, coordinating gift ty African violets, Stephanotis, ucts and services. With manufacturing and horticulture industries. It delivers tangible accessories, containers and florists’ supplies to Mini Orchids and many more distribution facilities in Miami, Atlanta, Chica- results that benefit growers, workers, con- floral professionals worldwide. Low minimum specialty crops. go, New Jersey, Dallas and California, we are sumers, the environment and the bottom-line. orders. Shipping within 24 hours on most able to service many market segments across items. the country.

Booth 911 Booth 1025 Booth 1036 Booth 1117 B & H Flowers Inc. Chrysal USA Encore Floral Marketing Aldershot Greenhouses Ltd. Carpinteria, CA Miami, FL Walker, MI Burlington, Ontario, Canada B & H Flowers produces Chrysal Americas is an international compa- We will show- We are one of North America’s premier pot- a variety of commercial, VeriFlora-certified ny offering a multitude of products for the case a selection ted blooming producers. Our unsurpassed and organic flower crops for both mass complete nutrition and care of fresh-cut flow- of color coordi- commitment to quality has made us a top market retail and wholesale distribution, ers for growers, wholesalers, florists and nated bouquets. Importing allows us to bring producer of potted blooming plants in North providing customers nationwide with sus- supermarkets in the United States, Canada together floral product from different coun- America. Long-lasting blooms for home and tainably grown, vibrant and long-lasting and Latin America. tries into our own unique offerings. In addi- office, Aldershot Greenhouses Ltd. potted beautiful California flowers. Visit us at the tion, our Miami and Dallas facilities enhance plants continue to perform with excellence. California Pavilion. our distribution opportunities nationwide.

Booth 1125 Booth 1213 Booth 1613 Booth 1713 World Class Flowers A-ROO Co. LLC BayCityFlowerCo.Inc Temkin Egg Harbor City, NJ Strongsville, OH Half Moon Bay, CA International Inc. If you agree spotting Packaging, presentation and merchandising For four generations, Bay City remains com- Payson, UT and utilizing trends is vital, then visit our makes all the difference. A-ROO develops mitted to growing the most diverse selection Now celebrating 30 years, Temkin will show- booth. We are focusing on what’s new, mar- solutions for all decorative and brand identi- of flowering plants. Devoted to continually case its impressive line of stock and custom ketable and what’s going to sizzle for the next fying needs in floral departments and retail improving quality to exceed consumers’ floral packaging. Sleeves, sheets, picks, year. We have everything your customers are garden centers. Our award-winning creative expectations vs. merely satisfying, we keep upgrade covers, signage and displays are all looking for: designs, concepts and tools that department for custom programs and large our retailers’ floral displays vibrant with color available and fully customizable. Check out will educate and inspire them to have fun with stock inventory of covers, sheets, sleeves, etc. every day. See new varieties, new promotions our fresh collection of stock prints and deco- flowers. will make your floral products say, “Buy me!” and our first of a kind packaging at our rative insert sheets featuring bold new looks booth. and contemporary classics.

Floral Watch is a regular feature of PRODUCE BUSINESS. Please send information on new products, personnel changes, industry, corporate and personal milestones and available literature, along with a color photo, slide or transparency to: Managing Editor, PRODUCE BUSINESS, P.O. Box 810425, Boca Raton, FL 33481-0425, or e-mail us at [email protected]

MAY 2010 • PRODUCE BUSINESS 107 AISLE-BY-AISLE BOOTH REVIEW

Booth 1732 Booth 1733 Booth 1811 Booth 1817 Dan Schantz Farm & Greenhouses LLC The Elite Bouquet Eve’s Garden, Inc. Jolo Farms Inc. Zionsville, PA Miami, FL Land O’ Lakes, FL Miami, FL As we grow as a company, we’re going to con- Located in the heart of Eve’s Garden Inc., estab- Jolo Farms grows flowers year-round on 400 centrate on what we’ve always done, which is Miami, Elite also has four lished in 1979, is a fami- acres of owned, operated or partnered farms to grow the best possi- other U.S. locations covering the surrounding ly-owned Bonsai Tree in Florida, Eduador, Colombia and Costa Rica. ble product for our regions of New Jersey, Chicago, Denver and and Lucky Bamboo Nursery located just We supply a full line of florist-grade, premi- customers. Growing Los Angeles. Elite’s primary imports are roses, North of Tampa, Florida. We offer unique um, consumer bunches, bouquets and novel- for all seasons: Fall spray roses, Gerberas and Alstroemeria. See products designed and produced by us ty flowers. We are excited about our new, ornamentals, Poinset- Elite for bouquets, consumer bunches, cut directly to you. Our mission is to provide our exclusive line of farm-ready arrangements tias, Easter bulbs and greens, fresh arrangements, grower bunches, customers with the best quality, pricing and called Expressions. annuals. fresh-cut and specialty-cut flowers. customer service possible.

Booth 1825 Booth 1841 Booth 1901 Booth 1925 Potter Inc. Pride Garden Products Sunshine Bouquet Co. Dos Gringos — A Bryan, OH King of Prussia, PA Miami, FL California Flower Company Potter Inc. continues to be a premier supplier Pride Garden Products man- Our quality, hand-crafted floral bouquets are Vista, CA of upgrades for any floral department. From ufactures innovative baskets, thoughtfully designed with your customers in Come by our booth — one of only a handful our hand-tied bows, proudly made in the containers, carts and acces- mind. of California growers and bouquet assem- USA and our seasonal potted enhancement sories for supermarkets, mass markets, club blers — to experience the latest in different kits, to our trendy, time-saving corsage back- stores, greenhouse growers and garden cen- West coast flowers and innovative merchan- ings, Potter Inc. is your one-stop supplier for ters. Products include our patented AquaSav™ dising and packaging. Look for the giant sun- everything floral and more. coco liner, which reduces watering by half flowers and our California team ready to and promotes healthy root systems resulting meet, greet and inform. in beautiful plants.

Booth 1939 Booth 1942 Booth 2017 Booth 2040 Niagara Economic White’s Nursery & The Sun Valley Group Bethel Organics Development Corp. Greenhouses Inc. Arcata, CA Arcadia, FL Thorold, Ontario, Canada Chesapeake, VA Maximize sales and cre- Bethel Organics has the solutions to grow Pick up a copy of our White’s has been growing quality potted ate excellent floral experiences for your cus- organic. Our line of retail-ready products will 2010 Ontario Green- plants and outdoor annuals and delivering tomers by offering our premium California- help you meet your customer’s needs to go house Growers’ Directory & Buyer’s Guide. This throughout the United States for over 52 grown cut flowers. In addition to consumer green. We offer cartonettes and strip packs directory is industry-specific and available to years. Customers include supermarkets, bunches, specialty-cut flowers and California- for the savvy gardener and our Organic Seed buyers, suppliers, government agencies, trade wholesalers, other growers and mass mar- style bouquets, we offer POS material to com- Starting Kit is for the customer that can use a and industry associations, etc. who are inter- keters. plement any program. Sun Valley’s Farms and complete gardening kit. For growers, we carry ested in sourcing Ontario greenhouse prod- crops are all VeriFlora-certified. Ask about our the full line of DOT Pots™, the original OMRI ucts and supplies. year-round tulip program. Listed™ biodegradable pot.

Booth 2125 Booth 2133 Booth 2203 Booth 2235 Carolina Fraser Avery Imports Nurserymen’s Deroose Plants Inc. Fir Co. LLC Batavia, NY Exchange Inc. Apopka, FL Mouth of Wilson, VA Whether you are a garden center, florist, Half Moon Bay, CA At Deroose, we focus on quality and strong Carolina Fraser Fir Co. has been in greenhouse, nursery, designer or gift store, In business since 1941, Nurserymen’s customer service. Whether you’re looking for business for over 25 years and has Avery Imports offers a variety of over 1,000 Exchange is one of the largest wholesalers of high-quality liners or unusual and highly been established as a reliable sup- different items to indoor blooming plants, specialty foliage and desirable finished prod- plier of live-cut Fraser Fir Christmas choose from, with packaged plants in the nation. Offering a ucts to boost your profits, trees and greenery products. We over 400 new broad range of innovative products year- wehavealinethatwillfit are committed to providing the most beauti- items for 2010. round to retailers nationwide, we pride our- your business needs. Let ful quality products on the market. selves on our horticultural excellence and us grow along with you. inspired design.

Booth 2238 Booth 2315 Booth 2335 Booth 2407 Sunshine Growers Inc. Syndicate Sales Hawaiian Sunshine ASB Greenworld Lakeland, FL Kokomo, IN Nursery Inc. Inc. In business since August Syndicate Sales is Waimanalo and Hilo, HI Valdosta, GA 1986, Sunshine Growers is a manufacturer, importer and distributor of Hawaiian Sunshine Nursery is a family-owned For more than 30 years, ASB Greenworld has a wholesale contract over 1,500 items to the floral industry. Brand and operated nursery specializing in Bromeli- been a supplier to the floral industry. We are grower of unique, high names including Aquapic®, Aquafoam®, ads and Tropical Plants for more than 30 producers of peat moss and related mixes, quality blooming potted plants, foliage and Aquaplus the Difference is Clear ®, Aquahold®, years. Visit our booth to discover our Hawai- including potting soils, mulch and bark items. outdoor landscape material. See us for bedding Garden Collection®, Hoosier Glass®, and ian Volcano Plants and our brand new TPIE Our own peat bog is located in New plants, dish gardens, hanging baskets, herbs and Designer Vases are known throughout the (Tropical Plant Industry Exhibition), award- Brunswick, Canada, with locations in Mt. vegetables, perennials and poinsettias. industry as representing the highest quality winning Kalanchoe Thyrsiflora ‘Fantastic.’ Elgin, ON, Canada, Valdos- products second to none. ta, Georgia and Virginia.

Booth 2417 Booth 2507 Booth 2513 Booth 2618 Penang Nursery Inc. Galleria Farms C.H. Robinson Bougainvillea Growers Apopka, FL Miami, FL Tampa, FL International (BGI) Penang Nursery is a Galleria Farms is With more than Boynton Beach, FL grower and distributor a solution and service provider of premium 100 years experience in perishable products, Bougainvillea Growers of foliage as well as home décor gardens in floral products to mass retailers and super- C.H. Robinson understands that every day is a International offers tropical many sizes. Specializing in uniquely designed markets. Our employees have a combined logistical race against time in the retail floral bougainvillea in a variety of gardens of foliage, bamboo and Bonsai, floral industry experience of more than 90 world. That’s why we offer a comprehensive colors and products that can be shipped Penang Nursery is known for innovation in years. We are one of the largest growers of suite of services designed to optimize the effi- across the country without dropping its color our industry. Come see our newest line of low chrysanthemums and specialty flowers in ciency of your floral supply chain. or foliage. Vibrant bush, trellis, braided stan- maintenance, self-watering pots. the world with more than 100 hectares in dards, hanging baskets and Bonsai arrive production. retail-ready for immediate sale.

108 PRODUCE BUSINESS • MAY 2010 F L O R A Floral Traceability: L & The Big Waiting Game F O As promising as using GTIN for floral may sound, other priorities and L concerns continue to delay real-world application of the standard. I A BY JODEAN ROBBINS G E

M change making the floral deliv- safety pushes retailers to quickly implement ery system dramatically more the same GTIN system in produce, floral A efficient and less labor inten- may benefit as well. “Implementation in R sive is on the horizon. The other categories of business by retailers and K movement of the proven GS1 suppliers in the channel will pave the way E Astandard into the perishable arena promises to floral,” states Alan Garton, director of an accuracy and effectiveness never before industry development for GS1 US, based in T seen in floral distribution and sales. Lawrenceville, NJ. I “Right now, there is no standard use of “We anticipate this happening within the N protocol in the flower industry,” explains next few years,” says Teri Miller, produce Christine Boldt, executive vice president of category manager with the Food Lion Fami- G the Association of Floral Importers of Florida ly of Banners and Bottom Dollar Food, head- (AFIF), in Miami, FL. “If the industry uses quartered in Salisbury, NC. “Retailers are standard protocol, then each step in the sup- already modifying their processes and sys- ply chain can use the same barcode to move tems to address this with produce.” the box in and then out of their warehouses. Photo courtesy of the Association of Floral Importers of Florida More than 2 million companies in over 25 BUSINESS BENEFITS Implementing floral GTINS would benefit industries and 145 countries worldwide use The implications for handling efficien- the entire supply chain, from growers and [a Global Trade Item Number, or GTIN.] We cies in perishables and synchronization of shippers to those on the receiving end. are not starting something new, we are using systems within the retail and supply envi- proven standards.” ronment are what make GTIN especially Miller of Food Lion adds, “The GTIN and “The floral industry needs to create a attractive. “Supermarkets already have stan- its unique format provides both the retailer common language to be used as a standard dardized GTIN/UPC barcodes on most and supplier the ability to eliminate cross- identification of cut flowers and greens,” everything else in the grocery store, but not references, eliminate manual input, differen- agrees Jim Wanko, executive vice president on floral,” explains Boldt of AFIF. “So GTIN tiate product by supplier, differentiate prod- of the Wholesale Florist & Florist Supplier usage would put the whole store using the uct movement by supplier, reduce box sizes, Association (WFFSA), headquartered in same barcode system. Also, using the automate manual processes, track product Annapolis, MD. GTIN/UPC would help identify the products through the supply chain, track shrink and Despite the positive industry chatter for all of the suppliers and how their prod- effectively manage the category.” about floral GTIN, priorities in other perish- ucts move instead of using generic barcodes The benefits of a floral GTIN system ables as well as continued concern over cost for all suppliers on bouquets.” stretch from retail all the way down through continue to delay implementation. “GTIN Although GTIN may make technological the supply chain. “Many flowers are being for floral is on our radar, but the priority is sense, the business benefits must be in delayed as they clear Homeland Security in the Produce Traceability Initiative [PTI],” alignment as well. “In order for the industry Miami,” reports Wanko of WFFSA. “Much of states Mike O’Brien, vice president of pro- to fully embrace GTIN, stakeholders have to the process is being done by hand with duce at Schnuck Markets Inc., located in St. be sure such a system makes good business paper and pencil. The process can be sped Louis, MO. “There is an urgency surround- sense and the ROI will be significant to the up dramatically with use of technology — ing the traceability of food that trumps future of their business,” explains Peter J. the GTIN.” GTINs in floral.” Moran, CEO of the Society of American Wholesalers could see a revolution in However, as urgency related to produce Florists, based in Alexandria, VA. their inventory control and pricing. “Today,

MAY 2010 • PRODUCE BUSINESS 109 F industry,” explains Boldt. “A lot of segments L What Is GTIN? in the floral chain say they can see the benefits for others, but don’t see the real benefit O O he GTIN (Global Trade Item Number) to identify bunches and bouquets.” for themselves.” R and UPC (Universal Product Code) Through the direction of the Floral Concern about cost also plagues the ini- A T are part of an internationally recog- Logistics Coalition, six key trade associa- tiative. “If each segment of the floral indus- nized data standard behind bar-coding sys- tions — WFFSA, PMA, AFIF, CAFGS (Califor- try could see savings or know it won’t cost L tems enabling supply chain partners to nia Association of Flower Growers and them more money to change to the stan- eliminate redundancies, reduce manual Shippers), CCFC (California Cut Flower Com- dard, then more would implement it,” says labor and minimize the chance for human mission) — and SAF (Society of American Boldt of AFIF. “There is some upfront cost & & error in the distribution process. “Imple- Florists) — along with support from GS1US involved to do the numbering system for the mentation can help cut cost and error out have been working for more than two barcodes, so many just see additional cost to F of the floral supply chain, speed delivery years to define, test and refine the coding change their current number systems.” and, ultimately, make a fresher and more strategy so the industry can move forward. “There has to be a solid economic reason O consistent range of product available to the Industry-wide committees are currently for adopting the GTIN,” Wanko concurs. “For L consumer,” says Julia Stewart, public rela- working on Best Practices for box labeling, the growers, it has to be that the majority of tions director for the Produce Marketing UPC item labeling and synchronizing data. their customers ask for it. For the wholesale I Association (PMA), based in Newark, DE. Hanauer explains the process. “First, distributor, it has to be that the majority of the A “This is all about building a fundamental there must be mutual agreement between product they receive uses the GTIN.’” G foundation that will allow us to use the newest retailers and their supply partners to com- Data synchronization and system integra- supply chain technology worldwide,” adds mit to this change,” she says. “Second, tion also present challenges. “There is an E Cindy Hanauer, senior director of floral for supply partners must obtain company pre- enormous number of SKUs used in the floral Winn-Dixie Stores Inc., in Jacksonville, FL. fixes, match them up to their product industry to identify the secondary attributes The Floral GTIN initiative proposes to offerings and follow the identification of a product,” explains Cindy Hanauer, senior M implement two data standards, the GTIN at process all the way through to purchase director of floral for Jacksonville, FL-based A the box level and the UPC for bunches and orders, packing, shipping and invoicing. Winn-Dixie Stores Inc. “Things like color R bouquets. “The 14-digit GTIN will be used Third, there may be some needed system mixes, product mixes, seasonal mixes and to identify boxes of flowers,” explains integration on both sides to adapt to the packaging all come into play. In addition, K Stewart. “For the items inside the box, if in new GTIN technology; however, many there are many individual systems within the E the United States, the UPC [also called the companies have already upgraded to a entire supply chain that touch each individ- GTIN-12] will be used in UPC barcodes to GTIN-adaptable technology. Finally, pro- ual box of product from store order to cus- T identify bunches and bouquets. If outside vide continuous education on the impor- tomer purchase. It is imperative both the data I of the United States, the EAN [also called tance of using GTIN and other technolo- and systems at each touch-point are accurate- N the GTIN-13] will be used in EAN barcodes gies to better serve our customers.” pb ly reflecting the products in a granular, yet efficient manner.” G NEXT STEPS very few wholesalers are able to scan in and implementation has been the rise of PTI, So what is an industry member to do? scan out cut flowers and greens,” says although it could end up facilitating the “Think, as you’re building the system, about Wanko. “The GTIN would allow them to do process as well. Says GS1’s Garton, “Once all the categories of products in the mix and both. It would allow for better inventory those systems are in place, retailers can easi- what you need to do to make the entire sys- control and more accurate pricing when the ly place those requirements on the floral cat- tem compatible with how you handle them,” articles are sold. It would reduce the cost egory. When retailers are looking at systems recommends Garton of GS1 US. “Look at and time required to receive product signifi- in the store, whether it be POS or enterprise back-end receiving systems at the case level cantly. In the case of wholesale distributors systems, once you’re ready to receive some as well as front end POS systems and pre- with multiple branch locations, it will allow products using a unique identifier and all pare sales associates for the actual scanning them to send receiving information to the your scanning systems are ready to go, one of the product.” home office electronically. By scanning the would hope you’d be ready to quickly imple- Education at all levels is another valu- boxes as they are put on the truck in Miami, ment a secondary category.” able step. “Retailers should be doing in floral the wholesale distributor will know exactly “We believe PTI can be applied to any what they’re doing with other fresh cate- what is on that truck before it gets to him.” item, not just produce and that the imple- gories,” suggests Garton. “There is a need for “Growers and wholesalers can have a bet- mentation of PTI will absolutely lead to an education of staff on the Floral GTIN.” ter handle on their inventories,” agrees AFIF’s easier transition for floral GTIN,” says Miller “We should all be ready for this,” adds Boldt. “They could add products to inventory of Food Lion. “As long as retailers and sup- Hanauer. “As with any process change, espe- in their systems before it arrives at their door pliers are committed to PTI, they will be cially one as far-reaching as GTIN, there are and they could eventually use RFID to update prepared for GTIN.” technological and organizational changes that their inventory systems by the pallet at one But PTI isn’t the only rogue in the GTIN need to be made. These changes are not insur- time. They would also be able to track back process. Recognition of individual benefits mountable, but they require strong leadership any credits by the GTIN/UPC instead of just remains a stumbling block for many play- and diligence to make them happen.” pb issuing undue credits.” ers. “Education on the use and the process has been done over the past two years, so a For an extended version of this article on WHY THE WAIT? majority of the industry should understand Floral GTIN, please see our Web site, Perhaps the biggest spoiler to floral GTIN it, but change is a hard thing in the floral www.producebusiness.com

110 PRODUCE BUSINESS • MAY 2010 RETAIL By Dave Diver PERSPECTIVE Packaging Cycles

hat are the characteristics causing the wide berries, were also prime causes of slips or falls leading to injury, variations in the use of packaging at the retail and ultimately, expensive liability claims, were leading prospects level? Does packaging availability influence for transition to containers. The challenge was one of providing demand or does consumer demand drive pack- proper packaging, which at the same time would satisfy con- aging development? sumers with a mindset of selecting from bulk displays. Attempting WSoon after World War II, the development of polyethylene and to achieve a win-win result among producers, retailers and con- other plastics lead to research showing packaging not only sumers was becoming an over whelming obstacle. Such solutions increased sales of many fresh fruit and vegetable items, but also do not appear overnight. reduced the dreaded product loss contributing to unacceptable lev- One of the best examples is the use of clamshells for strawber- els of shrinkage. ries. Several shippers spending time evaluating retail operations Recognizing the opportunities these materials represented and recognized the potential for increasing retail sales, reducing labor the emergence of self-service retail departments, the Produce Pack- costs and providing the consumer quality product throughout the aging Association (PPA) was formed in 1949. By 1960, emphasis on entire day. The program not only worked, but eventually expanded gaining consumer acceptance of packaging became the main objec- to include nearly all formerly skeptical producers. Consumers now tive prior to changing the focus to marketing readily buy clamshell packages, a vast change and the PPA became known as the Produce from the days of in-store capped pints and Marketing Association in the 70s. Will there be quarts. The interest in food safety has also These major changes nevertheless did not been a catalyst to change consumers’ interest come quickly, as the expanding transition to another cycle in from pick-your-own bulk berry and grape dis- supermarkets required training of personnel produce plays. The easy-to-open-and-re-close concept of and the selection and purchasing of equip- packaging or the clamshell, along with product visibility has ment and supplies for in-store preparation. lead to greater use for small size items includ- Backroom layouts would require modification. will the ing other berries, cherries and boiler onions, to Some chains would develop centralized pre- evolution of mention a few, as packaging producers look to packaging. At the producer level, packers were identify all marketing opportunities and differ- in the advent of makeovers, which would con- advancements entiate product variation. tinually require tweaking. Consumers’ to meet current However, the latest driver for delivering the response, as judged by tonnage increases, was consumer consumer acceptable product is the ever more than positive. However, the fox in the increasing emphasis on the desire for traceabil- chicken coup was the continual mounting interests ity. In addition, the ability to clearly show pressure for retail labor efficiency. Gradually, continue? country of origin (COOL), sell-by or packing produce clerks recognized it was faster to date, as well as marketing messages, has package multiple cases of an item in one unit brought packaging for most items back into the size with a limited amount of size variation mainstream of consumer interest. than to have an array of several different package units. This type Will there be another cycle in produce packaging or will the evo- of regimentation would gradually turn off consumers, especially lution of advancements to meet current consumer interests contin- as household size began declining. Add to this the inclusion of ue? Ask a member of the Air Force staff at the turn of the millenni- product in mediocre condition, and by the 1970s, consumers were um and the reply would have been the previous century was one of beginning to gradually shift their produce shopping to stores with continuous evolution of manned high performance aircraft that is limited in-store packaged product for both quality and conve- destined to continue. Now ask some of those currently making deci- nience. Even potatoes and onions were partially displayed in bulk. sions about the vision for the next several decades and the anticipa- Astute produce operators recognized the best of both worlds was tion is a high percentage of hot-rod seat-of-the-pants jet jockeys will displaying larger sizes of an item in bulk and smaller sized prod- be replaced by ground controllers, thousands of miles in the dis- uct packaged. Not only did the rebirth of bulk add to sales, but the tance, using sophisticated technology with precision guidance. reduction of higher supply and labor costs more than offset any The need for packaging is unlikely to change in the near increased shrinkage due to spoilage. This was particularly true of future. The development of new materials and methodology will excessive vegetable handling and turnover problems. continue providing innovation with changing adaptations for con- With the recognition that small sizes sold best packaged also sumers and the industry. A cycle within a cycle appears to be a came the reality that anything small, such as bulk grapes and reasonable expectation.

MAY 2010 • PRODUCE BUSINESS 111 Letters excerpted from The EUROPEAN Perishable Pundit, April 27, 2010, MARKET with commentary by Jim Prevor Lessons Learned From The Volcanic Ash:

Andreas Schindler Andrew Sharp Electronic Documentation Systems Needed

Marc DeNaeyer he headlines have been blasting about reopened skies in My brother is stuck in Madrid, and I wanted to fly to Mexico this Europe. The produce and broader perishable food indus- weekend. My colleagues wanted to fly to Russia tomor- try experienced great damage from the related suspen- row...Everything is blocked. sion of air service. The mobility of the people by air is totally interrupted. The train • The lack of refrigeration facilities at the airport in the stations are in chaos. TWest African nation of Ghana has been a big blow to pineapple and The internal transport of Europe is nearly 100 percent by truck. pawpaw farmers who sell to Europe because of the lack of flights. There is not any problem. • In Kenya, thousands of day laborers are out of work because Only exotic fruits from Latin America, Asia or Africa are blocked, produce and flowers can’t be exported amid the flight cancellations. such as mango and other “little” fruits. Also, the berries are not coming in. Kenya has thrown away 10 million flowers — mostly roses — since Coming in from outside is a problem. The internal transport in the volcano eruption. Asparagus, broccoli and green beans meant Europe is not affected. for European dinner tables are being fed to Exporters from overseas, focused on perishable Kenyan cattle because storage facilities are fruits — transported by air — are heavily affected. filled to capacity. “The one major Andwealsoreceivedareportfrom • In New York City’s Flower District, thou- issue we, as Marc de Naeyer, Managing Partner of sands of dollars worth of tulips, peonies, daffodils TROFI, who is based in The Netherlands. and hundreds of other varieties usually come in importers of Marchadthistosay: on the Friday night flights from the Netherlands sea-freighted We used to do a lot of tropicals by air in the to be distributed Saturday morning. Many wed- good old days — now it is mostly grapes, pineap- dings didn’t have Dutch flowers. produce, have ples, melons, mangos and avocados by sea. Andrew Sharp, Business Development to deal with is Due to this shift in our business, we have Director of Mack Multiples (UK) and a the fact that been lucky so far as we do only marginal air- member of the board of directors of PMA, freight imports these days. But everybody is run- sent us this note in the midst of the crisis: DHL/FedEx et ning out of stock quickly: the losses for growers Biggest issue is people stuck around the al., are not and exporters in places like Kenya are staggering. world...The produce business has a lot of travel- I read an article this morning in the Internation- ers and there are key people stuck in far-flung delivering our al Herald Tribune/New York Times, which quot- places...Europe resembles a war zone with peo- documentation ed exporters losing as much as $3 million a day ple fleeing the Dust, heading to Transit Points from the in Kenya. andtraversingFrance. Kenya also exports thousands of tons of vegeta- The channel Ferries have never had it so countries of bles weekly (baby corn, extra fine beans, sugar good... this would be a good stock to buy. origin.” snaps etc.) to the continent and the UK. Other The other point is that all the documents we exotic imports from places such as Brazil, Indone- fly around the world, bills of lading, etc., are sia, Malaysia, etc., have also come to a standstill. stuck, which means we can’t get to some of our fruit even though the On the other end of the spectrum is the export of Dutch vegetables containers are in the ports! to nations such as the Middle East and USA, which have experienced An electronic solution is needed desperately! tremendous losses. Andreas Schindler, Sales and Purchase Manager of the The one major issue we, as importers of sea-freighted produce, German produce importer, Pilz Schindler, and Director of the have to deal with is the fact that DHL/FedEx et al., are not delivering Don Limón brand, had this to say in the middle of the mess: our documentation from the countries of origin. Fortunately, customs Concerning the ash-cloud here in Europe, we are affected mostly and phyto-authorities are cooperating and temporarily agree to accept by the closing of nearly all airports in Europe. Nobody expected some- copies so we can get import goods cleared. thing like this. Even when it came up we expected maybe one day. But Many thanks to Andrew Sharp of Mack Multiples, Andreas now we are blocked already four days. Schindler of Don Limon and Marc de Naeyer of TROFI for helping We look at each other like...“Hey, what is going on?” Nobody has a to capture the experience of those caught in the midst of the battle. concept for this case. And we do not know how long it will be blocked. Let us hope the authorities at least learn something from the dis- And how it will go on after. aster and move ahead with an electronic document process. pb

112 PRODUCE BUSINESS • MAY 2010 INFORMATION Receive supplier information fast using the Produce Business Information Showcase. Here’s How: SHOWCASE 1) Please go to www.PRODUCEBUSINESS.com and click on The Electronic Rapid Response Card and enter the Reader Service numbers that correspond to the ad and the information showcase. 2) Contact the advertiser directly via the Web site, e-mail, phone or fax listed in the ad. MAY 2010 COMPANY PAGE # RS# PHONE FAX COMPANY PAGE # RS# PHONE FAX Agrexco USA, Ltd...... 24...... 60 ...... 718-481-8700 ...... 718-481-8710 Mann Packing Company, Inc...... 9 ...... 4 ...... 800-884-6266 ...... 831-422-5171

Albert's Organics ...... 77...... 20 ...... 800-899-5944 ...... 610-388-8418 J. Marchini & Son / LeGrand ...... 62...... 72 ...... 559-665-9710 ...... 559-665-9714

Maurice A. Auerbach, Inc...... 25...... 18 ...... 201-807-9292 ...... 201-807-9596 MIXTEC Group ...... 48...... 27 ...... 626-440-7077 ...... 626-440-1557

Maurice A. Auerbach, Inc...... 70...... 19 ...... 201-807-9292 ...... 201-807-9596 Mucci International Marketing, Inc...... 88...... 44 ...... 519-326-8881 ...... 519-326-5917

Babe Farms, Inc...... 94...... 13 ...... 800-648-6772 ...... 805-922-3950 National Mango Board ...... 93 ...... 7 ...... 877-MANGOS-1 ...... 407-629-7593

Blue Book Services...... 67...... 10 ...... 630-668-3500 ...... 630-668-0303 New Jersey Department of Agriculture...... 51...... 48 ...... 609-292-8853 ...... 609-292-2508

Canadian Produce Marketing Association ...... 45 ...... 3 ...... 613-226-4187 ...... 613-226-2984 New York Produce Show and Conference...... 37...... 212-426-2218...... 212-779-8779

Capital City Fruit Co., Inc...... 24...... 25 ...... 515-981-5111 ...... 515-981-4564 Nickey Gregory Company, LLC...... 65...... 38 ...... 404-366-7410 ...... 404-363-1169

Chelan Fresh Marketing ...... 87...... 58 ...... 509-682-4252 ...... 509-682-5766 OsoSweet Onion Co...... 102...... 92 ...... 231-946-9696 ...... 304-342-5022

Christopher Ranch ...... 71 ...... 2 ...... 408-847-1100 ...... 408-847-0581 Pacific Tomato Growers/Pacific Triple E ...... 88...... 94 ...... 209-835-7500 ...... 209-835-7956

Church Brothers, LLC ...... 94...... 80 ...... 831-796-1000 ...... 831-796-1050 Peri & Sons Farms ...... 34...... 15 ...... 775-463-4444 ...... 775-463-4028

Ciruli Brothers...... 91...... 50 ...... 520-281-9696 ...... 520-281-1473 Pismo-Oceano Vegetable Exchange ...... 94...... 83 ...... 805-489-5770 ...... 805-489-7058

Classic Vidalia...... 103...... 63 ...... 800-984-3254 ...... 912-526-5526 Produce Business Marketing Excellence Award...101...... 561-994-1118...... 561-994-1610

Columbia Marketing International ...... 85...... 37 ...... 509-663-1955 ...... 509-663-2231 Produce for Better Health Foundation ...... 17...... 11 ...... 302-235-2329 ...... 302-235-5555

Corona Marketing Co...... 81...... 90 ...... 805-346-2114 ...... 805-346-8138 The Produce Marketing Association...... 32...... 85 ...... 302-738-7100 ...... 302-731-2409

Curry & Company...... 102...... 66 ...... 800-929-1073 ...... 503-393-6085 The Produce Marketing Association...... 18...... 86 ...... 302-738-7100 ...... 302-731-2409

DeBruyn Produce Co...... 102...... 61 ...... 800-733-9177 ...... 956-968-1709 producepackaging.com ...... 44...... 56 ...... 800-644-8729 ...... 610-588-6245

Del Monte Fresh Produce ...... 116...... 33 ...... 800-950-3683 ...... 305-520-8495 Red Blossom Farms, Inc...... 23...... 39 ...... 805-981-1839 ...... 805-693-0032

DiMare Fresh - CA ...... 88...... 45 ...... 209-862-2872 ...... 209-862-0103 Red Blossom Farms, Inc...... 80...... 40 ...... 805-981-1839 ...... 805-693-0032

Dole Fresh Fruit Company ...... 2 ...... 6 ...... 818-879-6600 ...... 818-879-6628 Roberson Onion Co...... 103...... 87 ...... 912-375-5760 ...... 912-375-3610

dProduce Man Software...... 34...... 12 ...... 888-PRODMAN ...... 650-712-9973 SAGARPA - Embassy of Mexico ...... 46-47...... 59 ...... 202-728-1729 ...... 202-728-1728

Duda Farm Fresh Foods, Inc...... 102...... 21...... 800-342-DUDA ...... 561-978-5705 Sage Fruit Company ...... 84...... 24 ...... 913-239-0060 ...... 913-239-0055

Duda Farm Fresh Foods, Inc...... 21...... 22 ...... 561-978-5714 ...... 561-978-5705 Sambrailo Packaging ...... 57 ...... 9 ...... 831-724-7581 ...... 831-724-1403

East Coast Brokers & Packers, Inc...... 115...... 34 ...... 800-557-7751 ...... 863-869-9850 SIAL Paris...... 5...... 65 ...... 704-365-0041 ...... 704-365-8426

Eclipse Berry Farms, LLC ...... 88...... 67 ...... 310-207-7879 ...... 310-207-7868 Silver Creek Software ...... 48...... 73 ...... 208-388-4555 ...... 208-322-3510

Eclipse Berry Farms, LLC ...... 80...... 68 ...... 310-207-7879 ...... 310-207-7868 Simonian Fruit Co...... 63...... 74 ...... 559-834-5307 ...... 559-834-2363

Eurofresh Farms, Ltd...... 42...... 81 ...... 520-384-4621 ...... 520-384-4187 Spice World, Inc...... 71...... 26 ...... 800-433-4979 ...... 407-857-7171

Family Tree Farms...... 63...... 35 ...... 866-FLAVOR-1 ...... 559-595-7795 Sun World International ...... 62...... 75 ...... 661-631-4160 ...... 760-398-9613

Fisher Capespan ...... 75...... 89 ...... 800-388-3074 ...... 514-737-3676 Sun-Maid Raisins ...... 105...... 57 ...... 800-786-6243

Florida Department of Agriculture ...... 53...... 28 ...... 850-488-4303 ...... 850-922-0374 SunnyRidge Farm, Inc...... 78...... 62 ...... 800-725-8856 ...... 863-299-7794

Freska Produce International, LLC ...... 92...... 82 ...... 805-650-1040 ...... 805-650-3550 Tanimura & Antle, Inc...... 26-27...... 14 ...... 800-772-4542 ...... 831-455-3915

Frontera Produce ...... 102...... 69 ...... 956-381-5701 ...... 956-381-5706 Tennessee Dept. of Agriculture...... 52...... 46 ...... 615-837-5517 ...... 615-837-5194

General Produce, Inc...... 69...... 32 ...... 800-782-5833 ...... 404-361-1841 Thermal Technologies, Incorporated ...... 59...... 47 ...... 803-691-8000 ...... 803-691-8010

Giannini Packing Corp...... 62...... 16 ...... 559-591-3758 ...... 559-591-5708 Trinity Fruit Sales ...... 63...... 88 ...... 559-433-3777 ...... 559-433-3790

Gills Onions ...... 33...... 49 ...... 800-348-2255 ...... 805-240-1932 Uesugi Farms, Inc...... 95...... 36 ...... 408-842-1294 ...... 408-842-0274

The Giumarra Companies...... 97...... 31 ...... 559-897-5060 ...... 559-897-6733 United Fresh Produce Association ...... 39 ...... 8 ...... 202-303-3400 ...... 202-303-3433

Gourmet Specialty Imports LLC ...... 71...... 51 ...... 610-345-1113 ...... 610-345-1116 Veg-Pak Produce, Ltd...... 49...... 84 ...... 416-255-7400 ...... 416-255-3859

David E. Grimes Co...... 70...... 91 ...... 831-637-1499 ...... 831-636-4660 Vessey & Company, Inc...... 71...... 93 ...... 888-505-7798 ...... 760-356-0137

Hood River Cherry Company ...... 94...... 17 ...... 541-386-2183 ...... 541-386-5025 Walla Walla Gardeners' Association, Inc...... 103...... 55 ...... 509-525-7071 ...... 509-529-4170

I Love Produce LLC ...... 71...... 70 ...... 610-869-2205 ...... 610-869-5711 Washington Fruit & Produce ...... 89...... 52 ...... 509-452-8529

Index Fresh of California...... 61 ...... 5 Well-Pict Berries ...... 80...... 29 ...... 831-722-3871 ...... 831-722-6340

Inline Plastics Corp...... 56...... 71 ...... 800-826-5567 ...... 203-924-0370 Well-Pict Berries ...... 79...... 54 ...... 831-722-3871 ...... 831-722-6340

Intergrow Greenhouses, Inc...... 88...... 42 ...... 585-682-0052 ...... 585-682-0195 West Coast Tomato, Inc...... 68...... 43 ...... 941-722-4537 ...... 941-729-6778

Keystone Fruit Marketing, Inc...... 103...... 41 ...... 717-597-2112 ...... 717-597-4096 West Lake Fresh ...... 80...... 53 ...... 831-724-0644 ...... 831-724-0117

Doug Kophamer Farms...... 103...... 64 ...... 661-831-2268 ...... 661-831-2517 Yakima Fresh LLC...... 83...... 23 ...... 800-541-0394 ...... 847-685-0474

LGS Specialty Sales, Ltd...... 73 ...... 1 ...... 800-796-2349 ...... 718-542-2354 Kurt Zuhlke & Association ...... 44...... 56 ...... 800-644-8729 ...... 610-588-6245 MAY 2010 • PRODUCE BUSINESS 113 Blast from the Past

or more than 75 years, Oneonta Starr Ranch Growers 40 net-weight cartons. Now, we have more than 30 different types of has been a leading player in the Washington fruit packs.” What’s more, “The industry has evolved as far as receivers,” he industry, all thanks to Paul “Tommy” Thomas and his adds. “In those early years, we sold to big terminal markets: Chicago, dashed dreams of become a baseball player. Following Detroit, Philadelphia, New York, Boston, Los Angeles and San Francisco. Tommy’s graduation from Brown University, he was They are still a huge part of our success; however, we are now selling to Fready to go play ball for his hometown team, the Boston Red more retailers in the South and Midwest.” Today, 80 percent of Oneonta’s Sox. But his stepfather, G. Herbert Taylor, had other plans, and volume is shipped directly to retailers. sent him to Hamburg, Germany, to learn the ins and outs of When Dalton joined the company, Oneonta was made up of 15 grow- exporting fruit. er/packers. Today, more than 60 growers harvest crop from more than Upon his return to the United States, Tommy opened Standard Fruit, 4,000 acres of Thomas family orchards. Today, Dalton runs the business in Wenatchee, WA, which later became Oneonta Trading Company. with his two sons, Jim and Brad, making the company a third generation Oneonta is a Native American word with a variety of meanings, includ- produce business. In addition to apples, Oneonta is among the North- ing, “convergence,” “mountain,” and “rocky outcrop,” all of which west’s largest pear and cherry shippers and also deals with commodities describe the Wenatchee area, where Tommy presided over the coun- such as blueberries, citrus, soft fruit, grapes and kiwis, with exports try’s first apple exporting company. shipped to 45 countries around the world. In the 1970s, following 40 years in the business, Tommy sold his inter- The accompanying photo was used in a 1960s marketing campaign to est in Oneonta to this son, Dalton, who remains at the head of the com- illustrate the variety of apples the company grew and shipped. Paul pany today. Prior to joining the family business, Dalton worked at the “Tommy” Thomas is pictured at the far right. Seated is Sid Braker, who USDA. “I first worked for the USDA as an inspector of apples, pears, cher- partnered with Tommy in the early 60s to form Custom Apple Packers, ries, potatoes and onions,” he recollects. “I started at Oneonta as a quality packing under the Starr Ranch label. Marguerite Thomas, Dalton’s moth- control person, which lasted only a month before I started selling.” er and Tommy’s wife, is third from the right. Much has changed since Dalton entered the produce business, includ- Should you recognize any of the unidentified individuals in the photo, ing packaging and technology. “In my early years, apples were packed in please write to us at the address below. pb

The Blast from the Past is a regular feature of PRODUCE BUSINESS. We welcome submissions of your old photos, labels or advertisements along with suggested captions. Please send materials to: Editor, PRODUCE B USINESS, P.O. Box 810425, Boca Raton, FL 33481-0425, or e-mail [email protected]

114 PRODUCE BUSINESS • MAY 2010 PLANT CITY, FL • MAPPSVILLE. VA YEAR-ROUND GROWERS, PACKERS AND SHIPPERS ROUND TOMATOES, VINE-RIPES, ROMAS, AND GRAPE TOMATOES

With the proper blend of the best of tradition and state-of-the-art technology, we take great pride in providing our customers with the very best tomatoes. Year-round—from Pallet to Plate, the choice is clear.

Batista Madonia Sr. President & CEO Evelyn M. Madonia, Executive Vice President/Secretary-Treasurer

Batista Madonia Jr. Rosemary Madonia, Stephen Madonia Sales Manager Comptroller All Growing Operations

GROWERS • PACKERS • BROKERS • SHIPPERS 800-557-7751 or 863-425-3500 Fax: 863-869-9850 Reader Service # 34 Reader Service # 33